- Mantra (OM) falls 90% in the last 24 hours.
- Market participants speculate that the fall was a result of pump and dump.
- I had previously cited glaring defects in Mantra’s tokenomics with 52% of token supply being held by 10 accounts.
Mantra Crashed 85% within a single day bringing almost $5 billion worth of value to zero. I had previously predicted this fall on 27th March 2025, citing the serious trouble with Mantra’s tokenomics.
Though this appears to be a textbook pump-and-dump scheme, the CEO of Mantra has denied this. Still, the bad tokenomics would be the largest aspect to blame for this 90% crash.
Mantra’s Fall Was Inevitable, I Had Predicted on 27 March
For IP reasons, I cannot post a link to this original page, however above is a screenshot of what I thought for Mantra 2 weeks before its failure.
70% of Users Who Bridged Tokens Ineligible For Reward
Mantra had previously announced a reward program where its users were required to bridge their tokens in exchange for Galxe rewards.
Upon bridging, as many as 70% of users were found to be ineligible for the rewards program.
This was the reason that brought my attention to Mantra’s other aspects like project readiness, tokenomics, and other areas.
Seriously Disturbed Tokenomics
Mantra’s most disturbing aspect was its tokenomics where the top 10 accounts controlled more than 52% of the token supply. Despite being at least a 6-month-old project, Mantra’s too-high token concentration was a serious red flag.
Now that we know the tokens were pumped and dumped, we suspect either the token was held in multiple accounts to show decentralized ownership or were distributed to a very close network of investors. Otherwise, such a seemingly-coordinated sell-off would never had happened.
Anyone who has been investing in the crypto markets understands that centralized tokenomics is a ticking time bomb. Even if any single large token holders panic, we would see a spiraling down crash.
Even if we believe that Mantra’s crash was not a pump-and-dump scheme, it would still be the fault of its skewed tokenomics. A sale by one of the top whales in a liquidity-dried market would easily cause most of the other holders to sell their holdings.
Avoid Catching the Falling Knife
At current prices, it would seem like a steal to buy OM, however, we seek to caution our readers that this could be akin to catching a falling knife. Mantra has already seen a 90% crash (for whatever reason) and is unlikely to see a recovery anytime soon.
For those who are still willing to invest, I would caution them to only invest as much as they can afford to lose in a wager.