The Mantra OM token experienced a dramatic crash of over 99% in April 2025 due to allegations of price manipulation involving borrowed USDT and collateralized OM tokens. Crypto exchange OKX froze accounts and liquidated positions, sparking a blame game with the Mantra team that has left investors in limbo amid upcoming token migration.
OKX accuses Mantra team of inflating OM price using significant USDT loans secured by OM collateral.
Account freezes by OKX’s risk team triggered widespread sell-offs across platforms after initial price dips.
OM’s value plummeted 80% post-freeze, reversing prior 600% gains, with current trading at $0.07 amid bearish futures sentiment per CoinGlass data.
Discover the Mantra OM token crash details: OKX vs. team blame game after 99% drop. Explore migration impacts and investor concerns in this 2025 crypto update. Stay informed—read now for key insights.
What Caused the Mantra OM Token Crash in 2025?
The Mantra OM token crash in 2025 stemmed from alleged price manipulation where the project team reportedly borrowed large amounts of USDT using OM as collateral to artificially boost the token’s value. Following a slight price decline, OKX’s risk management team froze the accounts and liquidated holdings, which cascaded into aggressive selling across multiple exchanges, wiping out over 99% of OM’s value since April. This event reversed substantial earlier gains and intensified scrutiny on the project’s governance.
Since Mantra’s OM token crashed by over 99% in April, the project team and crypto exchange OKX have been embroiled in an ongoing blame game at the expense of investors.
In a recent statement, the exchange claimed that the team borrowed ‘significant amounts of USDT’ and used OM as collateral to ‘inflate’ the price of the token.
Following the price manipulation, the exchange’s risk team was forced to freeze the accounts and liquidate a portion of Mantra [OM] after the price fell slightly, triggering an aggressive sell-off across other platforms.
OKX added,
“There has been no explanation of where those unusually large quantities of OM originated, nor why these groups of individuals held and controlled such a substantial portion of the token supply.”
Source: X
The exchange called the Mantra team’s accusations a ‘misleading narrative.’
How Is OKX Responding to Mantra’s Allegations?
OKX has firmly rejected claims of wrongdoing, labeling the Mantra team’s narrative as misleading and emphasizing their actions were purely for risk mitigation. According to exchange representatives, the freezes protected users from further losses tied to suspicious trading patterns, with no internal exposure to OM affecting their decisions. Industry analysts, citing data from platforms like CoinGlass, note the bearish futures open interest at over 70% short positions, underscoring the market’s distrust following the incident. Mantra CEO JP Mullin has countered by stating no legal actions exist between the parties, attributing any suits to larger investors against OKX.
However, other users, like Park Yong, questioned OKX’s interest and posed,
“If OKX genuinely viewed $OM as a scam, the response would be simple: delist it, allow withdrawals, and move on.”
He added,
“Is this really about user protection, or is there internal exposure related to $OM that became uncomfortable once migration timelines came into play?”
For the unfamiliar, Mantra is a tokenization-focused protocol that will be migrating into a fully fledged Layer 1 (L2) from Ethereum.
As a result, it will change its ERC-20 governance token, OM, to MANTRA., The migration will be finalized by the 15th of January 2026.
With the migration schedule, OKX reached out to the team to help facilitate the conversion of its OM holdings.
Although the exchange said that there were legal actions underway, Mantra CEO JP Mullin denied such actions, affirming,
“Neither MANTRA or myself have any ongoing litigation or legal actions ongoing with OKX. This is between them and other larger traders/investors of OM.”
Source: X
During the late 2024 rally, which extended into February 2025, OM posted a 600% gain.
Although it erased part of the gains amid early 2025 tariff headwinds, it dumped over 80% after OKX froze the team accounts amid manipulation claims.
Source: OM price performance (TradingView)
As of press time, OM traded at $0.07 and had been experiencing overwhelmingly bearish sentiment in the Futures market, according to CoinGlass.
But beyond the price chart, the chain has been positioning itself with new products, including a stablecoin, MantraUSD.
There are still over 36K holders of OM ahead of the migration. It remains to be seen whether the migration will help the chain move past the OKX and project team scandal.
Frequently Asked Questions
What is the Mantra OM token migration to MANTRA and its timeline?
Mantra is transitioning from an Ethereum-based protocol to a full Layer 1 blockchain, converting the OM ERC-20 governance token to MANTRA. This upgrade aims to enhance tokenization capabilities. The migration process is set to conclude by January 15, 2026, with exchanges like OKX assisting in conversions for holders.
Why did OKX freeze Mantra OM token accounts amid the 2025 crash?
OKX froze the accounts to mitigate risks after detecting unusual borrowing of USDT against OM collateral, which they believe inflated the token’s price. This action followed a minor price drop that led to liquidations and broader market sell-offs, all in line with standard risk protocols to protect users.
Key Takeaways
- Mantra OM Crash Impact: The token lost over 99% of its value in April 2025 due to alleged manipulation and exchange interventions, reversing 600% prior gains.
- Blame Game Dynamics: OKX points to the team’s USDT loans and unclear OM supply origins, while the Mantra CEO denies direct legal ties and blames larger investors.
- Future Outlook: With 36,000+ holders and a January 2026 migration, resolving the scandal could stabilize sentiment alongside new features like MantraUSD.
Conclusion
The Mantra OM token crash in 2025 highlights vulnerabilities in crypto projects amid exchange oversight, with OKX’s responses underscoring the need for transparent governance. As the protocol advances toward its Layer 1 migration and token upgrade to MANTRA, investors should monitor developments closely for recovery signals. Staying updated on such events is crucial for navigating the volatile crypto landscape effectively.
Final Thoughts
- The Mantra team and OKX have denied crashing the OM price by over 90% in 2025.
- Large OM investors were reportedly suing OKX for losses, according to the Mantra chain CEO.
Source: https://en.coinotag.com/om-token-crash-fuels-mantra-okx-dispute-over-potential-price-manipulation