OM Token Price Plummets: MANTRA and Shorooq Address Market Concerns

In a recent development, the price of MANTRA’s OM token experienced a dramatic decline, dropping approximately 90% within hours on April 13. This sudden market movement has raised significant concerns within the cryptocurrency community. In response, MANTRA and Shorooq Partners have issued a statement to provide clarity and transparency regarding the situation.

According to the statement, the drastic price drop was not the result of any exploit or malicious activity. Instead, it was caused by the forced liquidation of large leveraged positions that used the OM token as collateral. These positions were unwound abruptly by the exchange, leading to a cascade of sell-offs that significantly impacted the token’s price.

The timing of the liquidation, which occurred during low-liquidity hours late on Sunday night (Asia time), exacerbated the market’s reaction. This triggered a panic sell-off that continued to affect the OM price throughout Monday, April 14, 2025. MANTRA has acknowledged the incident and is actively investigating the cause of the liquidation. They have committed to publishing a detailed post-mortem once all the facts are clear.

Shorooq’s Long-Term Commitment

Shorooq Partners, a key investor in MANTRA, emphasized their long-term commitment to the project. As an equity investor, Shorooq’s focus remains on the long-term growth of MANTRA, rather than short-term token price fluctuations. They support MANTRA’s vision of creating a blockchain platform that brings real-world assets on-chain while meeting regulatory requirements.

Shorooq has clarified that they have not sold or traded any OM tokens during the recent market movements. Aside from a test sale on March 24 and 25, where a non-meaningful portion of tokens was sold to test system robustness, most of Shorooq’s tokens remain locked according to the vesting schedule. The firm has refuted any rumors suggesting investor-led selling.

Commitment to Transparency

Both MANTRA and Shorooq have reiterated their commitment to transparency and accountability. They have assured the community of their dedication to providing clear answers and conducting a thorough investigation into the events that transpired. The community’s support is valued, and both entities are advocating for transparency in addressing the concerns raised by the recent market developments.

The full statement from MANTRA and Shorooq can be found here.

Why This Matters: Impact, Industry Trends & Expert Insights

The OM token experienced a dramatic 90% drop due to the forced liquidation of large leveraged positions, raising significant concerns in the crypto community.

Recent industry reports indicate significant volatility and large-scale liquidations in the crypto market, with over $1 billion in liquidations over a weekend. This aligns with the recent OM token crash, which resulted in $66.97 million in liquidations, highlighting the impact of high leverage on market stability.

As per insights from Carlos Guzman from GSR, the crypto market’s recent crash is exacerbated by global political tensions and the absence of near-term positive catalysts. This reinforces the vulnerability of the crypto market to external economic factors, as seen in the OM token’s price decline.

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