The Mantra token (OM), once touted as a key player in the race to tokenize real-world assets, has witnessed a catastrophic plunge in value, falling over 86% in a single day. From trading above $6.30, OM nosedived to below $0.43 on April 13, erasing nearly $6 billion in market capitalization and sparking a wave of speculation across crypto circles. Traders were quick to voice their concerns, with some drawing grim parallels to the infamous collapses of LUNA and FTX. A market participant known as Gordon posted on X, “The team needs to address this or OM looks like it could head to zero, biggest rug pull since LUNA/FTX?” At the time of publication, the exact cause of the price implosion remains unclear. The Mantra team has yet to issue an official detailed statement, although co-founder JP Mullin attempted to calm the waters by confirming that the team’s OM holdings remain intact and verifiable. “We are here and not going anywhere,” Mullin wrote , directing users to a blockchain address tied to the team’s holdings. MANTRA Community Scrambles for Clarity In an initial response to the growing panic, the Mantra team claimed the collapse was not the result of internal malfeasance but rather “triggered by reckless liquidations.” The statement, shared on social media, emphasized that the core infrastructure of the project remains intact and that the community Telegram group is still active. However, the broader crypto community has grown wary of such assurances. 2025 has already seen multiple high-profile collapses, from the Libra memecoin’s implosion to a $1.4 billion hack at Bybit —leaving investors on edge and increasingly skeptical. Tokenization Ambitions Now in Jeopardy Just months ago, Mantra was making headlines for very different reasons. In January, the platform signed a $1 billion deal with investment conglomerate DAMAC to bring its real estate and data assets onto the blockchain. By February, Mantra had secured a coveted Virtual Asset Service Provider license from Dubai’s VARA, positioning itself as a serious player in the UAE’s booming crypto scene. The project had been riding a wave of optimism from real estate investors looking to leverage blockchain for capital formation, citing faster settlement times and reduced costs. But following the OM token’s plunge, the future of those ambitions now hangs in the balance. The post Mantra Token Crashes Over 85% in 24 Hours, Raising Fears of Another Major Rug Pull appeared first on TheCoinrise.com .
