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Troubled decentralized finance (DeFi) platform Mantra released an official statement addressing the reasons for a 92% flash crash of its OM token on April 13.<\/p>\n
An April 16 announcement titled \u201cStatement of Events: 13 April 2025\u201d reiterates<\/a>\u00a0that the crash did not involve\u00a0any token sales by the project itself<\/a>, and the Mantra team remains fully functional and continues investigating the incident.<\/p>\n Although Mantra CEO John Mullin previously said that the team was preparing a post-mortem, the new statement offered few new details about the reasons behind the rapid movement of OM tokens to exchanges and the subsequent liquidation cascade.<\/p>\n The post also reiterated that there are two types of OM tokens, with one being Ethereum-based (ERC-20<\/a>) and the other running on Mantra\u2019s mainnet.<\/p>\n \u201cThe incident almost exclusively involved ERC-20 OM, as ERC-20 OM represents virtually the entire liquid market,\u201d Mantra said in the statement.<\/p>\n Launched in August 2020, the original ERC-20 OM token has a fixed supply of 888.8 million OM, with 99.9% of these tokens being in public circulation as of April 15.<\/p>\n However, Mantra mainnet OM tokens had only 77.5 million in circulation after the Mantra Chain minted an equivalent amount of OM in October 2024.<\/p>\n Additionally, the post mentions a divergence in OM spot prices on OKX and Binance. The discrepancy began around 6:00 pm UTC, around an hour before the OM token\u2019s crash, according<\/a> to CoinGecko.<\/p>\n Among its conclusions, Mantra stated that further information from its exchange partners will \u201cprovide more clarity on these events, adding:<\/p>\n \u201cWe invite our centralized exchanges partners to collaborate on providing more clarity on trading activities during this time.\u201d<\/p><\/blockquote>\n The Mantra team confirmed that it is preparing a support plan for OM that includes both a token buyback and a supply burn. No timeline for the rollout of this plan was provided.<\/p>\n Related: <\/strong><\/em>Mantra CEO plans to burn team\u2019s tokens in bid to win community trust<\/strong><\/em><\/a><\/p>\n As previously reported by Cointelegraph, OKX CEO Star Xu called Mantra<\/a> a \u201cbig scandal\u201d in a post published hours following the crash. Mantra CEO Mullin also said Binance is the biggest holder<\/a> of the OM token, citing Etherscan records<\/a>.<\/p>\n Cointelegraph contacted the Mantra team for further comment on the April 16 statement but did not receive a response by publication time.<\/p>\n<\/figure>\n
Limited circulation of mainnet OM tokens<\/h2>\n
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Mantra\u2019s conclusions<\/h2>\n