The Future of Mantra (OM) Coin Price: Will It Rebound or Continue to Fall?

The cryptocurrency market was recently rocked by the dramatic collapse of the Mantra (OM) token, which saw its price plummet over 90% within a single day. 

This event has raised significant concerns among investors and traders, prompting discussions about the future of the token and whether it can recover from this catastrophic drop.

Overview of the Price Collapse

On April 13, 2025, the price of OM crashed from approximately $6.30 to below $0.50, erasing more than $5.5 billion in market capitalization. 

This sudden decline has drawn comparisons to other notable collapses in the crypto space, such as the Terra LUNA incident, where investors faced substantial losses.

Market participants have expressed their frustration and skepticism regarding the circumstances surrounding this crash.

One trader remarked on social media, "The team needs to address this or OM looks like it could head to zero, biggest rug pull since LUNA/FTX?" This sentiment reflects widespread concern about potential insider activity and market manipulation.

Investigating the Causes of the Crash

The exact reasons behind the OM token's dramatic price drop remain unclear. However, several factors have been identified as potential triggers:

1. Large Token Deposits

Reports indicated that a wallet associated with the MANTRA team deposited approximately 3.9 million OM tokens onto OKX, a major cryptocurrency exchange. This action raised alarms about a possible sell-off, leading to panic among investors.

2. OM Forced Liquidations

Co-founder JP Mullin stated that the price decline was exacerbated by "reckless forced closures" initiated by centralized exchanges (CEXs). He suggested that these closures occurred without adequate warning during periods of low liquidity, contributing to the severity of the crash.

3. Market Manipulation Allegations

The MANTRA team has faced accusations of manipulating the token's price through various tactics, including undisclosed over-the-counter (OTC) deals at steep discounts. Such practices could have placed significant amounts of OM into the hands of major holders who were left vulnerable when prices began to fall.

4. Community Frustration

The locking of MANTRA's official Telegram channel during the fallout further fueled community frustration and speculation about internal actions leading to the crash.

Also Read OMJAIL Meme Coin Surges 289% Following OM Token Meltdown

MANTRA Team's Response

In light of these events, Mullin has publicly denied any wrongdoing by the MANTRA team, asserting that they did not initiate any sell-off and that all team tokens remain locked according to their vesting schedules. He emphasized that they are committed to investigating what went wrong and addressing community concerns.

Mullin's statement aimed to reassure investors that the project is not abandoning its goals and is focused on transparency moving forward. He mentioned that they would provide further updates in response to community inquiries.

Also Read Can OM Recover? Looking at the Recent Mantra Crash

Market Reactions and Broader Implications

The fallout from the OM crash has had ripple effects across the cryptocurrency market:

1. Market Capitalization Decline

The overall market capitalization for Real World Assets (RWAs) dropped by 13.3%, reflecting broader concerns about stability in crypto markets.

2. Trading Volume Surge

Following the crash, OM’s trading volume surged significantly as traders reacted to price fluctuations.

Despite these immediate impacts, some analysts believe that this incident may be an isolated event rather than indicative of systemic issues within the broader cryptocurrency ecosystem. For instance, Ripple and Boston Consulting Group have projected explosive growth for tokenized RWAs, estimating that this sector could reach $18.9 trillion by 2033—a compound annual growth rate (CAGR) of 53%.

Also Read How to Buy MANTRA (OM)

Future Price Predictions for OM

Given the recent volatility and uncertainty surrounding OM’s price, various analysts have provided predictions for its future trajectory:

Short-Term Outlook

Some forecasts suggest that if current trends continue without significant changes in fundamentals or market sentiment, OM could stabilize around $0.2103 by late 2025.

Long-Term Potential

However, if trust can be restored among investors and positive developments occur within MANTRA’s ecosystem—such as new partnerships or technological advancements—there is potential for recovery.

Investor sentiment will play a crucial role in determining whether OM can rebound from its recent lows or if it will continue to face downward pressure.

OM to USDT viat Bitrue Market

Recent OM Mantra Developments in Tokenization Initiatives

Despite the turmoil surrounding OM's price collapse, Mantra has been actively pursuing significant developments in its business strategy:

Partnership with DAMAC

In January 2025, Mantra signed a $1 billion deal with Dubai-based DAMAC Group to tokenize various assets, including real estate and data centers. This partnership aims to leverage blockchain technology for enhanced transparency and security in asset management.

1. Expansion in the UAE

Mantra obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing it to operate as a regulated digital asset service provider in the UAE. This license enables Mantra to offer decentralized finance (DeFi) solutions alongside traditional finance protections.

2. Focus on Tokenization

Mantra’s blockchain platform specializes in tokenizing real-world assets (RWAs), catering to industries like real estate and private equity by digitizing ownership and trading processes. The UAE's progressive regulatory framework positions it as a strategic hub for these operations.

3. Broader Middle East Strategy

Through partnerships like that with DAMAC, Mantra aims to become a preferred blockchain ledger for RWAs in the Middle East, facilitating capital formation while adhering to strict security standards.

Conclusion

The collapse of Mantra's OM token serves as a stark reminder of the volatility inherent in cryptocurrency markets and highlights ongoing concerns regarding transparency and governance within projects. As stakeholders await further updates from MANTRA’s leadership, it remains crucial for both investors and developers to prioritize open communication and accountability.

While challenges lie ahead for OM’s recovery, there is potential for growth if trust can be rebuilt within its community and if broader market conditions become favorable once again. The future trajectory of OM will depend on how effectively these issues are addressed in the coming weeks.

Investors should stay informed about developments within MANTRA while also considering broader trends in cryptocurrency markets as they navigate this dynamic landscape.

FAQ

1. What caused the recent collapse of Mantra's OM token?

The collapse was triggered by a large deposit of OM tokens into OKX linked to potential insider activity and exacerbated by forced liquidations initiated by centralized exchanges during low liquidity periods.

2. How much did OM's price drop during this incident?

OM's price fell over 90%, dropping from approximately $6.30 to below $0.50 within hours on April 13, 2025.

3. What is being done by MANTRA's team following this incident?

The MANTRA team is investigating what caused the crash while assuring stakeholders that no internal actions led to a sell-off; they plan to hold community discussions for transparency.

4. What are analysts predicting for OM's future?

While there are concerns about transparency and governance post-crash, some analysts remain optimistic about potential recovery if trust can be restored among investors and if broader market conditions improve.

Bitrue Official Website:

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.