Prominent cryptocurrency exchanges such as Binance and OKX have responded to the recent plummet in OM’s price, assuring their users that they will investigate the matter and share their findings.
On April 14, just a day after the Mantra token’s market capitalization fell by $5.5 billion due to fluctuations in the market, Binance released a statement via its Customer Support account on X, addressing the recent price drop.
A recent post indicated that Binance’s preliminary insights suggest that the price decline was a result of a series of liquidations across multiple exchanges that took place over the previous day.
In response to the token’s unstable status, Binance confirmed that it had included a pop-up warning for OM (OM) spot trading since January 2025, informing users of “significant changes” in the token’s economics, marked by an increase in supply.
“We are committed to closely monitoring the situation and will continue to take necessary actions to safeguard our users and uphold the integrity of our platform. Thank you for your ongoing trust in Binance,” stated the Binance Help Desk account.
At the time of reporting, the Mantra token has plunged nearly 90% in the previous 24 hours. Its market capitalization now rests at $764 million, drastically down from a high of $6 billion. The token is currently trading at $0.79, a staggering 91% decrease from its previous all-time high of $8.99 recorded last February.
Furthermore, Binance also mentioned that it had reduced leverage levels for the OM token since last October. Despite this, many traders expressed frustration in the comments, criticizing the exchange for not delisting the token prior to the incident.
In contrast, the CEO of OKX labeled the OM price drop as “a major scandal for the entire crypto industry.” He also promised that the exchange would prepare reports regarding the situation, considering that all necessary data is available on-chain.
“All on-chain unlock and deposit information is public; collateral and liquidation data from all significant exchanges can be scrutinized. OKX will ensure that all reports are ready!” the CEO stated in a recent update.
Recent on-chain data showed that 127 million OM, equating to 13% of the token’s circulating supply, was withdrawn from Binance over the course of the past month. Meanwhile, OKX recorded nearly 70 million token deposits, representing more than half of the amount withdrawn from Binance.
What transpired with OM?
During the previous weekend, OM experienced a drastic price crash of 90%, plummeting from $6.30 to under $0.50 within just a few hours. Mantra’s CEO, JP Mullin, asserted that the recent price collapse was a result of “reckless forced closures initiated by centralized exchanges affecting OM account holders.”
Mullin argued that the sell-off was not instigated by the internal team or investors, emphasizing that the OM tokens are still secured under a vesting schedule.
“Centralized exchange partners play a vital role in providing liquidity to projects like ours. We collaborate closely with them; however, they continue to wield significant discretion,” Mullin remarked.
Conversely, on-chain analysts have expressed differing views, suggesting that the sell-off began when a wallet associated with the Mantra team deposited 3.9 million OM on OKX. Crypto analyst Max Brown indicated that the team allegedly retains almost 90% of the total token supply, which may have led to the market sell-off that caused a $5.5 billion loss in market cap.