Is Mantra (OM) Intentionally a Scam?

After the price of Mantra (OM) coins soared to $8.2 from the previous $3.1, in less than 24 hours, the price of OM collapsed to $0.70, when this article was written.

The sudden fall in the price of OM crypto has caused many Mantra (OM) investors to suffer unimaginably huge losses, and not a few even think that Mantra (OM) is deliberately committing a scam.

However, the sudden fall in the price chart leaves a big question for Mantra investors: Is Mantra (OM) deliberately committing a scam?

Mantra (OM) Price Crash Condition

The recent price crash of Mantra (OM) represents a dramatic reversal from what was once a parabolic rise in its valuation. At its peak, OM soared above $8, capturing strong bullish momentum and investor attention. 

However, that rally has quickly deteriorated, and the current price has plummeted to $0.7091, marking a sharp decline of over 90% from its recent high.

Despite this crash, OM still reflects an overall gain of 204.07% since its inception. But that historical increase masks the extreme volatility and sudden collapse that followed its peak.

One of the most notable signs of the crash is seen in the market capitalization, which has dropped significantly to $687.38 million, reflecting an 88.70% decline. 

This sharp reduction in market cap suggests a massive withdrawal of capital from the project, likely the result of widespread selling and a loss of investor confidence following the peak.

Complex Situation

What makes the situation more complex is the unusually high trading volume in the last 24 hours, recorded at $2.32 billion, which represents an increase of more than 3,176%. 

Such a spike is often associated with panic selling, profit-taking by early holders, or market repositioning by large investors. It may also hint at an event such as a token unlock, which increases circulating supply and exerts downward price pressure.

The circulating supply of OM now stands at 969.32 million tokens, out of a total supply of 1.81 billion, with no stated maximum supply. 

This means that a significant number of tokens could still be released into the market, potentially adding further dilution and volatility if not carefully managed.

On the chart, OM’s price history had been relatively flat until late 2023. Then came a dramatic price surge in early 2025, quickly followed by a sharp and relentless downturn. 

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This pattern suggests a speculative bubble, where rapid gains are often unsustainable and tend to reverse sharply once investor sentiment shifts or when fundamental events trigger sell-offs.

In essence, the crash of Mantra (OM) reflects a classic cycle in crypto markets: explosive growth driven by hype or short-term catalysts, followed by a steep correction as reality sets in. 

It serves as a reminder of the risks associated with parabolic price movements and the importance of understanding tokenomics, supply schedules, and market sentiment before entering a volatile asset.

Why OM Price Crash?

1. Sudden Liquidations by Exchanges

Mantra’s CEO, JP Mullin, explained that the massive drop in OM’s price was sparked by unexpected liquidations on centralized exchanges.

These liquidations happened during low-liquidity periods, which made the situation worse and caused the price to crash rapidly.

2. Large Token Deposits Before the Crash

Blockchain data showed that a significant amount of OM tokens were moved to centralized exchanges just days before the crash. 

For example, over 14 million OM were sent to OKX, and a total of 43.6 million OM came from at least 17 wallets. 

These large transfers raised suspicions that some parties might have known about the impending sell-off.

3. Insider Dumping Accusations

Some in the community accused the Mantra team of selling off a large share of their tokens, potentially causing the price to fall. 

However, the team denied this, insisting that their token holdings were still locked according to their scheduled vesting timeline.

4. Investor Panic and Comparisons to LUNA

The rapid collapse in OM’s value reminded many of previous crypto crashes, such as Terra LUNA in 2022. 

This comparison sparked fear among investors, adding to the panic and selling pressure.

Is Mantra (OM) Intentionally a Scam?

The recent crash of Mantra (OM) has sparked intense debate across the crypto community, particularly around whether the project was intentionally deceptive or even a scam. 

While no concrete legal evidence exists yet to prove Mantra was engineered as a fraudulent scheme, both news reports and blockchain analysis raise serious concerns about the project’s integrity, transparency, and insider behavior.

From official sources, Mantra’s CEO JP Mullin publicly attributed the sudden 90% drop in OM’s value to forced liquidations on centralized exchanges, which were allegedly triggered during low-liquidity trading hours. 

Read Also: MANTRA DAO (OM) Price Prediction 2024-2030

According to him, these liquidations were unexpected and beyond the team’s control. He also denied any involvement from the core team in offloading tokens, stating that all team-held OM remains locked according to their vesting schedule.

On-Chain Clues: Insider Activity and Centralized Control

However, this explanation has been challenged by blockchain analysts and independent researchers, including the widely followed Trim Bot on X (formerly Twitter). 

In a detailed thread, Trim Bot presents on-chain evidence that strongly suggests wallets linked to Mantra, either directly through early seed investments or internal developer allocations, transferred millions of OM tokens to exchanges just days before the crash. 

These transactions, which included a 14.27 million OM transfer to OKX and 43.6 million OM sent by at least 17 wallets, coincided suspiciously with the timeline leading to the collapse.

What makes these findings more concerning is Trim Bot’s deeper insight into Mantra’s governance and structure. 

The investigation highlights how Mantra’s founders maintain centralized control over a significant portion of OM’s supply through early token distributions and affiliated funds like GRAIL. 

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Soft Rug Pull?

This control structure enabled what appears to be a “soft rug pull”—whereby insiders or associated wallets offload large volumes of tokens at the peak of market hype, leaving retail investors exposed to the downside.

The thread also outlines previous behaviors and patterns that mirror past exit strategies used by other controversial crypto projects. 

Though the OM team may not have broken any formal laws, the lack of transparency, potential insider coordination, and timing of sell-offs paint a picture of a project more concerned with profit extraction than long-term sustainability.

In essence, while Mantra (OM) may not meet the legal definition of a scam, its actions resemble schemes that prioritize insider gains over investor protection. 

Read Also: Mantra Token Price Analysis: Will the Mantra Token Hit $15?

The project’s recent price crash, paired with strong evidence of insider-linked token dumps and centralized control, suggests a calculated pattern of behavior that borders on exploitative—if not outright deceptive.

For investors, this case underscores the importance of on-chain transparency, decentralized governance, and caution in projects with highly concentrated token ownership. 

Mantra’s fall from grace is not just a market event, it’s a warning about how easily control and access can be abused in the crypto space, even without breaking the law.

Final Note

Mantra (OM) is not officially a scam, since there’s no legal proof or formal charges against the team. But recent findings, especially from blockchain analyst Trim Bot, raise serious concerns about how the project was handled.

Trim Bot showed that wallets linked to the team or early insiders moved millions of OM tokens to exchanges right before the crash. This suggests that some insiders may have sold their tokens quietly while the price was high. 

Even if the core team claims their tokens were locked, these indirect moves through affiliated funds (like GRAIL) hint at insider control and planning.

The project also has a highly centralized structure, meaning just a few people have power over the token’s supply and decisions. That makes it easier for those insiders to profit, while regular investors take the hit when prices collapse.

Mantra (OM) might not be an obvious scam, but it shows many red flags that look like a soft rug pull. It’s a case where the project followed the rules on paper, but acted in ways that hurt the community.

So no, it may not be “intentionally” a scam, but it still feels like one to many investors. Always be cautious with projects where a few people control most of the tokens.

FAQ

1. Is Mantra (OM) officially a scam?

No, Mantra (OM) is not legally recognized as a scam. There are no formal fraud charges or regulatory actions against the team. However, many investors are concerned about the project's transparency and insider behavior.

2. What did Trim Bot reveal about the crash?

Trim Bot uncovered on-chain evidence showing that wallets likely linked to Mantra insiders moved over 43 million OM tokens to exchanges just days before the crash. This raised suspicions of insider selling before the price collapsed.

3. Did the Mantra team sell their locked tokens?

The team claims their tokens are still locked, but analysts believe they may have used affiliated wallets or early allocations (like GRAIL) to move tokens indirectly, avoiding direct violations while still offloading OM.

4. Why did OM’s price fall so sharply?

The crash was reportedly triggered by forced liquidations on centralized exchanges during low-liquidity hours, combined with massive sell pressure from large token transfers. These events caused a 90% drop in price within hours.

5. Should investors avoid Mantra (OM) now?

Caution is advised. While Mantra isn’t officially a scam, the project shows signs of insider favoritism, centralized control, and poor transparency—all of which increase risk for retail investors.