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Mantra, the cryptocurrency project, lost 96% of its value in 2 hours. |
At around 1am on April 14 (Hanoi time), Mantra (OM) suddenly dropped from 6.1 USD to 1.37 USD in 60 minutes. After that, it continued to plummet to the bottom of 0.37 USD /coin. The drop was equivalent to 96% of its value. In a short time, the project divided its capitalization 16 times, causing 5.6 billion USD to evaporate from the market.
On X, investors called it one of the “most terrifying” events in crypto history. Previous crashes with FTX, LUNA also took place over days, rather than hours. Before the crash, Mantra was among the top 20 blockchain projects in terms of market capitalization. It had a fully diluted total value of about $5.9 billion . When it hit bottom, OM was worth just $370 million .
The cause of the incident is not yet clear. However, experts believe it came from sell-off orders, triggering a negative wave.
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Mantra Coin Drops Deeply, Chart Looks Like a "Carpet Pullout". Photo: Binance. |
One theory is that a developer or market maker’s wallet “dumped” the coins. Blockchain data shows that a wallet with the address 0x..b7 sold a lot from April 8 to 9. Previously, this account held 171 million OM ( worth $1.17 billion at the market price on March 25). Now the wallet has only about 80 million left.
Immediately after the crash, Mantra leaders spoke out to reassure the community. JP Mulin, co-founder of the project, insisted that they did not sell off. He argued that the price crash was due to the liquidation of some large positions on the futures exchange. The incident happened on the weekend, when there was little trading, leading to price fluctuations.
Data from CoinGlass also confirmed that about $67 million in OM futures contracts were “burned” in the last 12 hours. This is an unusually high number for an altcoin. Many of the orders were worth over $1 million .
Lookonchain traced the accounts, showing that about 43.6 million OM were deposited to the exchange in the past week. Among them, two wallets were labeled by the investigative firm Laser Digital, one of the strategic investors in Mantra.
MantraDao was launched in 2021. It initially followed the trend of decentralized finance (Defi) but changed direction to Layer-1, developing Real World Assets. This is one of the projects with the strongest growth in the recent period. From 0.017 USD at the end of 2023, it was priced at 9.17 USD in February, more than 500 times.
Source: https://znews.vn/dong-coin-giam-96-boc-hoi-5-5-ty-usd-von-hoa-trong-2-gio-post1545668.html
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