The price of the Mantra (OM) token collapses by over 90% in 24 hours

In a shocking turn of events, the Mantra (OM) token has experienced a staggering price drop of more than 90% in just 24 hours, plummeting from around $6.30 to below $0.50. This dramatic fall has wiped out over $6 billion from its market capitalization, raising alarm among traders and investors alike. The abruptness of this collapse has led some traders to characterize it as a potential 'rug pull,’ drawing comparisons with other devastating incidents in the crypto space, such as the failures of LUNA and FTX. Investor Gordon notably voiced concerns, stating that the Mantra team needs to provide clarity or risk seeing the OM token's value diminish to zero. At the time of writing, the reasons behind the OM token’s sudden drop remain unclear. Cointelegraph has attempted to reach out to the Mantra team for comments but have not received a response yet. This collapse comes on the heels of other high-profile losses in the cryptocurrency sector, including the Libra memecoin's implosion and a major $1.4 billion hack of the Bybit platform, both contributing to a climate of uncertainty in digital asset investments. In an effort to alleviate investor fears, JP Mullin, co-founder of Mantra, reassured stakeholders through social media, claiming the project's Telegram group remains active and that the team is not planning to abandon the project. Mullin referenced a verification address to prove that the team's tokens remain in their custody. The Mantra team attributed the price decrease to 'reckless liquidations', distancing themselves from any alleged foul play. This statement may be intended to reassure investors amid a rapidly evolving situation. In a bid to expand its operations, Mantra had recently entered a $1 billion deal with DAMAC, aiming to tokenize various real-world assets, an initiative supported by a virtual asset service provider license they obtained from Dubai’s Virtual Assets Regulatory Authority. The expansion into the UAE appears strategic, particularly given the growing demand for tokenized investment products among real estate developers and investors. Still, this recent collapse raises pressing questions about the project's future viability and the overall stability of tokenized assets. In summary, the situation surrounding the OM token is concerning and reflects the volatile environment of cryptocurrency markets where even established projects can falter dramatically and rapidly. Potential investors should approach with caution until further clarifications are made by the Mantra team, as the implications of this incident ripple through the digital asset landscape.