Mantra token price collapses by over 90% in 24 hours

Replace (April 13, 10:02pm UTC): This text has been up to date to supply updates from the Mantra workforce

The worth of the Mantra (OM) token, the native cryptocurrency of the Mantra real-world tokenized asset blockchain, has collapsed by over 90% within the final 24 hours.

On April 13, Mantra fell from a value of roughly $6.3 to under $0.50 and shed over 90% of its $6 billion market cap.

Some merchants characterised the token collapse as an obvious rug pull. Market investor Gordon wrote: “[The] team needs to address this or OM looks like it could head to zero, biggest rug pull since LUNA/FTX?”

Nonetheless, the precise motive for the collapse of the OM token’s value is just not clear on the time of this writing. Cointelegraph reached out to the Mantra workforce for touch upon the OM token collapse however didn’t obtain a solution by the point of publication.

The incident follows a number of high-profile token collapses and cybersecurity incidents, together with the Libra memecoin implosion and the $1.4 billion Bybit hack, answerable for billions of {dollars} in investor losses through the first few months of 2025.

Associated: Mantra unveils $108M fund to again real-world asset tokenization, DeFi

Mantra workforce and co-founder reply

Mantra co-founder JP Mullin responded to the OM token collapse and stated that the challenge’s Telegram group continues to be on-line. Mullin added that the Mantra workforce’s tokens are nonetheless within the workforce’s custody.

“We are here and not going anywhere,” Mullin wrote in an X post, whereas offering a verification handle for the Mantra workforce’s OM tokens.

The Mantra Workforce additionally claimed that the OM value implosion was “triggered by reckless liquidations” and never associated to actions undertaken by the workforce.

Mantra’s latest tokenization initiatives within the Center East

In January 2025, Mantra and funding conglomerate DAMAC signed a $1 billion deal to tokenize the funding conglomerate’s varied property, which embody actual property, information facilities, and different bodily properties on the Mantra blockchain.

Mantra obtained a digital asset service supplier license from Dubai’s Digital Belongings Regulatory Authority (VARA), in February 2025.

The license permits Mantra to function as a digital asset service supplier within the United Arab Emirates (UAE), operating crypto exchanges, broker-dealer companies, administration, and funding consulting contained in the Center Japanese nation.

The growth of Mantra’s footprint within the United Arab Emirates was fueled by excessive demand for tokenized merchandise from actual property traders and builders searching for new methods of funding tasks and securing capital.

Close to-instant finality instances for tokenized real-world property, decreased prices, and cross-border performance are simply among the causes traders cite for utilizing blockchain to safe investments and assist in capital formation.

Journal: DeFi’s billion-dollar secret: The insiders answerable for hacks