Laser Digital Denies Rumors of Dumping OM! All Backers Are Not Going Anywhere

OM, the native token of Mantra prices tumbled from $6 to a shocking $0.45 within just a few hours, triggering over $70 million in liquidations and sparking rampant speculation. But in the eye of this storm, Laser Digital, a key institutional backer, has spoken out firmly that they did not dump OM.

The sharp plunge in OM’s value fueled immediate fears of a rug pull, a coordinated pump-and-dump, or even a hack. 

Accusations quickly flooded social media, with some blockchain sleuths pointing fingers at large wallets allegedly tied to Laser Digital — a digital asset firm backed by Japanese banking giant Nomura. But according to Laser Digital, those rumors are entirely unfounded.

Read also: Is OM Worse Than LUNA? Comparing the Two Most Notable Crashes in Crypto History

What Really Happened to OM?

The OM token’s crash was not due to any insider betrayal, according to the Mantra team and its community leaders. John Patrick Mullin, co-founder of Mantra, attributed the plunge to "reckless liquidations". 

He explained that a large investor was forcibly liquidated on a centralized exchange, creating a domino effect that brought down OM’s price rapidly.

In a now-inaccessible Telegram message, community lead Dustin McDaniel emphasized that the Mantra team did not sell any tokens during the crash. 

“None of this was due to the team. We’re just as shocked as everyone else,” he said before the channel went offline to prevent further chaos.

Despite these reassurances, blockchain analysts from Lookonchain reported that approximately $227 million worth of OM tokens had been transferred to trading platforms from 17 addresses since April 7. Two of these addresses, they claimed, were possibly linked to Laser Digital.

Read also: What is OM Coin from MANTRA DAO?

Laser Digital Speaks Out

To clear the air, Laser Digital released a firm statement denying involvement in any mass token dump. The company clarified that the wallet involved in the alleged transfers does not belong to them, and instead was part of a third-party financing trade.

“The wallet referenced in the reports is not controlled by Laser Digital,” said a spokesperson. “Our core OM investment remains locked, and our support for the project has not wavered.”

The clarification was crucial for restoring some calm. As rumors of betrayal flew, confidence in the long-term sustainability of the OM token and Mantra’s vision as a real-world asset (RWA) Layer 1 blockchain was at risk.

OKX Responds and Tightens Risk Controls

Crypto exchange OKX, where much of the OM token activity occurred, has since adjusted its risk parameters and is reportedly investigating the situation. 

The exchange noted the possibility of “coordinated large-scale activities” leading up to the crash and is reviewing suspicious trading behavior.

FAQ

Q: What caused OM’s price crash?
A: According to Mantra's co-founder, the crash was triggered by the forced liquidation of a large investor’s position on a centralized exchange — not by the team or major backers.

Q: Did Laser Digital dump OM tokens?
A: Laser Digital denied any involvement in large-scale sales. The wallet in question was reportedly unrelated to the firm and part of a third-party financing trade.

Q: How much was lost during the crash?
A: The OM token crash caused over $70 million in liquidations within 24 hours, with some positions losing over $1 million.

Q: What is Mantra and what does OM represent?
A: Mantra is a Layer 1 blockchain focused on real-world assets (RWA). OM is its native utility token used for governance, staking, and more within its ecosystem.

Q: What steps are exchanges taking?
A: OKX has adjusted its risk parameters and is investigating suspicious activity that may have contributed to the crash.