The Illusion of Mantra's Liquidity? OM Price Plummets as Money Laundering Allegations Emerge

Confidence in the crypto market has been shaken this week as serious allegations against Mantra and its market makers have emerged. The focus of the controversy: claims that the liquidity of the OM token has been inflated through validation loopholes and wash trading schemes — undermining investor trust and causing a dramatic price collapse of 90%. OM Token of Mantra Criticized for Liquidity Manipulation According to a detailed investigation by CryptoSlate, some entities associated with Mantra are said to have exploited a self-reporting data vulnerability in major crypto data aggregators like CoinGecko and CoinMarketCap. By circulating the OM token on controlled wallets and trading pairs, the accused parties have allegedly created fake volume and inflated the liquidity figures of the token. The goal is very clear — to attract the attention of investors and trading activity by simulating market interest that does not actually exist. “The liquidity of OM is essentially an illusion,” a DeFi risk analyst quoted by CryptoSlate said. “When tested by a major sell-off, the illusion broke within minutes.”

Real-Time Collapse: $OM Collapses 90% in 90 Minutes This plan was disastrously disrupted when a large OM holder tried to liquidate their position. With actual liquidity much lower than reported, the price of the token dropped nearly 90% in just 90 minutes. Billions of dollars in paper market capitalization evaporated almost instantly, shocking investors and prompting them to seek answers. As of the time of writing, OM is trading at $0.051, down over 88% from its peak of $0.43 at the beginning of April. Token OM Price Table

The CEO of Mantra Responds with a Commitment to Burn Tokens In an effort to ease the situation, Mantra’s CEO John Patrick Mullin has committed to burning the entire amount of OM tokens allocated, which are currently locked until April 2027. Mullin stated: “I will not use the OM tokens allocated in the future. If restoring trust requires this sacrifice, I am ready.” Despite this gesture, critics question whether these symbolic moves are enough to restore confidence in the project. The scandal has sparked a debate about transparency and integrity in token listings and market maker agreements. The Overall Picture: Is the Authentication Model Broken? This controversy exposes deep cracks in the data infrastructure of the crypto market. Major aggregators like CoinGecko and CoinMarketCap rely heavily on self-reported data from token groups — a system that is prone to abuse. Industry experts are currently calling for: Mandatory disclosure of market maker agreements Tighter wallet audits and on-chain verification Enforcement of transparency regarding token supply and ownership concentration

But there is still resistance. Market makers argue that complete transparency could expose proprietary strategies and exchanges would face hidden operational costs. Without regulatory pressure, the adoption of stricter standards may still be inconsistent, creating more room for exploitation. Conclusion The Mantra-OM disaster is a wake-up call for an industry still grappling with issues of credibility. In a market built on transparency and decentralization, manipulation through loopholes not only threatens token holders but also endangers the entire ecosystem. Unless data verification processes are reformed and enforced, the next collapse may just be a matter of time.