Troubled decentralized finance (DeFi) platform Mantra launched an official assertion addressing the explanations for a 92% flash crash of its OM token on April 13.
An April 16 announcement titled “Assertion of Occasions: 13 April 2025” reiterates that the crash didn’t contain any token gross sales by the undertaking itself, and the Mantra crew stays absolutely useful and continues investigating the incident.
Though Mantra CEO John Mullin beforehand stated that the crew was making ready a autopsy, the brand new assertion supplied few new particulars concerning the causes behind the speedy motion of OM tokens to exchanges and the next liquidation cascade.
Restricted circulation of mainnet OM tokens
The publish additionally reiterated that there are two varieties of OM tokens, with one being Ethereum-based (ERC-20) and the opposite working on Mantra’s mainnet.
“The incident virtually completely concerned ERC-20 OM, as ERC-20 OM represents just about your entire liquid market,” Mantra stated within the assertion.
Launched in August 2020, the unique ERC-20 OM token has a set provide of 888.8 million OM, with 99.9% of those tokens being in public circulation as of April 15.
Nonetheless, Mantra mainnet OM tokens had solely 77.5 million in circulation after the Mantra Chain minted an equal quantity of OM in October 2024.
Mantra’s conclusions
Moreover, the publish mentions a divergence in OM spot costs on OKX and Binance. The discrepancy started round 6:00 pm UTC, round an hour earlier than the OM token’s crash, in line with CoinGecko.
Amongst its conclusions, Mantra said that additional data from its alternate companions will “present extra readability on these occasions, including:
“We invite our centralized exchanges companions to collaborate on offering extra readability on buying and selling actions throughout this time.”
The Mantra crew confirmed that it’s making ready a assist plan for OM that features each a token buyback and a provide burn. No timeline for the rollout of this plan was offered.
Associated: Mantra CEO plans to burn crew’s tokens in bid to win neighborhood belief
As beforehand reported by Cointelegraph, OKX CEO Star Xu referred to as Mantra a “large scandal” in a publish printed hours following the crash. Mantra CEO Mullin additionally stated Binance is the largest holder of the OM token, citing Etherscan data.
Cointelegraph contacted the Mantra crew for additional touch upon the April 16 assertion however didn’t obtain a response by publication time.
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