Mantra CEO Addresses OM Token's Abrupt 90% Price Decline Due to CEX Actions

In a recent statement, John Patrick Mullin, co-founder and CEO of MANTRA, sought to clarify the circumstances surrounding the dramatic 90% price drop of the OM token this past Sunday. He attributed the decline to what he described as 'reckless forced closures' by centralized exchanges (CEXs), rather than internal mishaps within the project team. According to Mullin, the timing and severity of the crash hinted at an abrupt closure of account positions on these platforms without prior notification. He illustrated concerns about the high discretion these exchanges wield and suggested negligence or perhaps even intentional market positioning led to this significant price dislocation. In the wake of the crash, the OM token's value plummeted from around $6.3 to an alarming low of $0.37, before making a slight recovery. This event has sparked accusations against MANTRA, with critics suggesting key insiders may have offloaded their holdings prior to the crash—a claim Mullin vehemently denied, emphasizing that all team and investor tokens remain locked. Despite his reassurances, skepticism within the crypto community persists, as many feel the communication lacked transparency, leading to lingering investor concerns. The OM token's recovery efforts are now at the forefront of MANTRA's priorities, with plans for community discussions and development of strategies for buybacks and burns as they navigate these troubling waters. As exchanges like Binance adjust margin requirements, the situation remains fluid, with broader implications for investors facing increased liquidation risks across the market. This incident underscores the vulnerabilities within the centralized exchange framework and raises poignant questions about investor security in a largely unregulated environment.