- Mantra (OM) lost over 90% of its value in an hour due to cascading cross-platform liquidations.
- Binance had flagged risk concerns about OM tokenomics months before the crash.
- The OM token saw $74.52 million liquidated in 24 hours, surpassing Ethereum’s volume.
The Mantra (OM) token experienced a steep crash over the weekend, dropping from $6.31 to $0.70 within one hour. This sharp decline triggered widespread concerns within the broader crypto community. Binance, one of the leading global cryptocurrency exchanges, responded by clarifying the cause of the drop, denying any involvement in the token’s downfall.
According to Binance’s statement on its official X account, the token’s collapse was due to cross-exchange liquidations. The platform noted that high leverage and rapid selloffs across multiple platforms led to the sudden price dump. Binance emphasized it had already introduced risk control measures for OM, including lowering leverage limits to curb potential volatility.
In January, Binance decided to warn users about the extensive tokenomic changes occurring with the OM token. Binance added a warning notice to Mantra spot trading to alert users about potential dangers present in the platform. The exchange introduced alert systems meant to promote trading transparency as part of its initiatives for unexpected token behavior protection.
Liquidations Surpass $74 Million in 24 Hours
In the wake of the crash, OM recorded a 24-hour liquidation volume of approximately $74.52 million. This placed it above Ethereum in terms of liquidation volume within the same timeframe. The scale of the losses drew further scrutiny from the community, prompting accusations toward centralized platforms, which Binance moved to address directly.
Public responses grew stronger when investigators disclosed that Mantra personnel supposedly control about 90% of the overall OM stock. The exchange stated it maintains continuous monitoring of the situation without giving specific comments about supply issues. The exchange declared its readiness to take any necessary measures for protecting its users as well as preserving platform security.
The crypto market faces growing problems with scamming activities, along with fraudulent activities. Shiba Inu and Ripple Labs have intensified their warning systems following growing AI-generated counterfeit content that imitates trusted personnel. Binance implements these security measures as part of continued attempts by leading trading platforms to reduce systemic risks.
