The MANTRA (OM) cryptocurrency experienced a dramatic 90% price collapse between April 10 and 15, 2025, plummeting from $2.45 to just $0.24, with its market capitalisation dropping from $5 billion to below $500 million, suggesting the project could be one of the largest rug-pull scams in cryptocurrency history. The market crash began after allegations spread across social media that the project's lead developers and investors had secretly sold large quantities of tokens before informing the community. The MANTRA DAO (decentralised autonomous organisation) was originally launched in 2020 and was considered a promising platform for decentralised financial services, attracting significant investments from numerous institutional investors and individuals.
Blockchain data analysis revealed that 27 wallets controlled by lead developers sold over $400 million worth of OM tokens between March 25 and April 10, just before the price collapse. John Li, founder and CEO of MANTRA, denied allegations of insider trading and fraud, claiming the sales were "completely legitimate and in line with the project roadmap," yet failed to explain why the community wasn't informed about these transactions in advance. Suspicions of fraud were further strengthened by the absence of new product launches promised in MANTRA's roadmap for Q1 2025, and the shutting down of comment capabilities on official communication channels, including the Discord server and Telegram group, after increasing disputes.
Cryptocurrency exchanges responded quickly to the developments: Binance, the world's largest crypto exchange, temporarily suspended OM token trading and withdrawals on April 16, KuCoin followed suit on April 17, while smaller exchanges like Gate.io and OKX implemented enhanced monitoring measures for the token. Regulatory investigations into the MANTRA case have been launched in several countries, including the United States and Singapore, and at least three class-action lawsuits have been filed by affected investors against the project's leadership. According to experts, this case further proves that the crypto market urgently needs more effective regulation and transparency requirements to protect investors.
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According to an exposé, Mantra’s $OM token crashed 90% in one hour on April 13, 2025—wiping out $5.5 billion in value—with co‑founder John Patrick Mullin accused of orchestrating a rugpull scheme. :contentReference[oaicite:1]{index=1}
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David Hamilton
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Mantra’s OM token crashed over 90% on April 14, wiping out roughly $6 billion in market cap; while fears of a rug‑pull circulated, the team blames forced liquidations—though fraud concerns remain :contentReference[oaicite:1]{index=1}.
