Mantra -Token crashes 90% in one hour, team blames the reckless liquidations of Team

The mantra -token (OM) fell more than 90%on Sunday, deposited, deposited from almost $ 6 to less than $ 0.4 and wiped billions in market value.

“The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notification,” co-founder John Patrick Mullin stated On X.

Mullin claimed that positions were “closed without margin calls or notification”, suggesting that exchange actions had activated the cascade.

In a separate official message, the project claimed That the crash “was caused by reckless liquidations.”

This year, the crash represents one of the steepest decreases of a single day in Crypto, which expresses concern about centralized exchange practices and the stability of RWA (Real-World assets) tokens.

Mantra is a layer of 1 blockchain built for topping real-world assets with regulatory compliance. Powered by the Cosmos SDK, it supports IBC and Cosmwamm, making it ready for interoperable and smart contract over several chains, according to the website.

The token seems to have fallen during the hours with low liquidity of up to $ 0.37, before a mild recovery is placed at around $ 0.8, according to data from Coingecko. Yet it still falls more than 90% compared to the peak of February of $ 8.99.

Arkham Intelligence facts Indicates that Mantra Dao has burned around 21 million OM -Tokens on individual transactions on 2 April.

Carpet Trek or forced liquidation?

The Mantra team firmly denied the public allegations of a “carpet pull” or insider -Tokendump. Their allocation remains locked and verifiable on the chain, the team said.

Forced liquidations occur when leverage trade positions fall under the maintenance requirements. This activates automatic sales that can speed up the price fall.

For Mantra, an important player in the RWA tokenization sector, the incident threatens its partnerships with organizations such as Google Cloud and Dubai’s Damac Group.

“Incidents such as this test investor confidence and a crucial question about how they can ensure that tokenized assets can be made safer for regular adoption,” said Hank Huang, CEO of Kronos Research, said Decrypt.

Huang said that the alleged hack indicated that the RWA sector is “still in its infancy, with a lot of work that is needed to build really resilient infrastructure” because the “increasing pressure” to enter into the sector in the sector continues.

Analysts from Tiger Research refused to comment on the issue pending further details of a media event that told Decrypt Was planned this afternoon, Asia hours.

Nevertheless, the Mantra team now faces an important challenge to rebuild Investor Trust.

“When discretionary powers are exercised without the necessary internal and external supervision, dislocations such as what happened recently, can and will take place, both projects and investors,” Mullin argued.

The project did not respond immediately Decrypts Request for comments.

Published by Sebastian Sinclair