“Hope rises like a phoenix from the ashes of shattered dreams,” a saying by S.A. Sachs, applies perfectly on MANTRA (OM) token right now which dropped from over $6 to around $0.40, wiping out $5 billion in market capitalization and leaving investors in shock on April 14.
MANTRA crash came as a nightmare for the crypto community and the token holders. OM, real-world asset, which was growing significantly, plunged more than 90% overnight. This incident sparked a debate within the crypto community on the reliability of crypto projects and exchanges.
The community is thinking from different angles including the speculation of insider trading as one of the reasons for OM collapse and the recklessness of centralized exchanges. The real reasons are still undisclosed. Industry experts believe centralized exchanges were the main driver behind the MANTRA crash.
“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders. The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice….we believe this was a coordinated attack,” said John Patrick Mullin, co-founder of OM token.
The incident happened when OM token’s market liquidity was at its lowest point. This was one of the reasons behind OM’s ‘big red candle’.
Also, there’s another story observed in the market. According to On-chain sources, since April 7, over 17 wallets have transferred a total of 43.6 million OM, worth $227 million at the time to centralized exchanges, accounting for about 4.5% of the circulating supply.
Arkham reported that these wallet addresses were linked to Laser Digital, a strategic investor in Mantra Network. Now, rumours are circulating that the group holds a large portion of OM supply with some other individuals and manipulated the chart to liquidate all short positions.
The crash has put investors under a range of emotions including fear and uncertainty, which then brought its comparison with the 2022 Terra LUNA collapse. This has stirred numerous speculations in the crypto market, but the biggest question remains: Can MANTRA (OM)
rise from the ashes?
So, in this article, we will discuss the five reasons why MANTRA (OM) can resurrect despite a 90% crash.
1. Strong Fundamentals in Real-World Asset (RWA) Tokenization
Mantra’s core focus on tokenizing real-world asset (RWA) positions it at the forefront of a rapidly growing blockchain ecosystem. The project’s $1 billion partnership with Dubai-based DAMAC Group aims to expand tokenized asset accessibility in the Middle East, a region increasingly embracing blockchain for real estate and finance. RWAs are expected to become a multi-trillion-dollar market by 2030, and MANTRA’s infrastructure for compliant, Sharia-friendly tokenization gives it a unique edge.
Despite the crash, analysts highlight OM’s technical foundation, emphasizing that it could become the “King of RWAs” due to its regulatory-compliant framework. This real-world utility distinguishes it from meme coins and speculative assets, providing a recovery chance as institutional interest in RWAs may grow.
2. Communication and Transparency with Users
MANTRA’s team was seen quite active since the moment OM crashed, ensuring proper crisis management. CEO JP Mullin clarified that the crash stemmed from “reckless forced liquidations” on centralized exchanges (CEXs), not a team sell-off. The team also tried to verify the wallet addresses to prove that there wasn’t any act of insider trading. Moreover, restored their telegram account and also maintained transparency with its users.
3. Historical Resilience and Market Potential
OM crypto was among the top performers before it faced a sharp fall. MANTRA price was giving over 100% and 3500% returns monthly and annually respectively. Most of the analysts were bullish on OM, the community was bullish on it and experts gave a price target of $10 to $15 respectively. The token had a history of great rebounds and even in post-crash it rebounded from $0.37 to $1.10 a 200% recovery.
4. Strategic Institutional Backing and Partnerships
MANTRA’s institutional alliances can work as robust backing. The DAMAC collaboration is part of a broader strategy to establish OM in high-value regions like the Middle East, where DAMAC’s $6 billion asset portfolio offers vast tokenization opportunities.
Additionally, Binance cited external liquidations (not project failure) as a crash contributor, implying that exchanges still view Mantra as viable. Institutional support buffers against retail-driven volatility. As DAMAC’s tokenization initiatives gain traction, demand for OM could rebound, especially if the partnership yields tangible use cases.
5. Broader Crypto Market Trends and Oversold Conditions
The cyclic pattern of the crypto market enables severe market crashes to turn into upward movements eventually. The Relative Strength Index (RSI) of OM reached oversold levels right after the market collapsed- a standard technical signal for potential market recovery. The market conditions support recovery through multiple macro-level indications.
Exchange-Traded Fund (ETF) investments in Bitcoin along with Ethereum’s rising popularity, may boost altcoins. The regulatory certainty in UAE regions supports the growth of RWA projects and maturation of crypto market may invite investors to utility-focused tokens compared to speculative ones.
Forced liquidations tend to generate market entry opportunities at reduced prices. The 90% price reduction of OM has the potential to draw speculative investors who believe in its future recovery through RWA developments.
Conclusion
The crypto market is known for its volatile nature. Investors must have heard and witnessed some extraordinary comeback stories of various cryptocurrencies. MANTRA’s strong RWA foundation, transparent team response, historical resilience, strategic partnerships, and market conditions can provide support to OM token and a potential path for recovery.
Also Read: Billions Wiped Off in Hours: Understand MANTRA (OM) Controversy here
