The Mantra DAO project is under pressure after on-chain data revealed a $26.96 million transfer of OM tokens to Binance. The timing could not have been worse—the transaction came just after OM’s value plummeted over 90% in a single day, from $6.28 to $0.7192.
The crash led to an over $5 billion loss in market cap and sparked rumors of insider selling, given that the Mantra team reportedly controls 90% of the token’s total supply.
CEO Pushes Back Against Insider Accusations
In a public statement, Mantra DAO CEO JP Mullin denied that team members or investors triggered the crash. Instead, he blamed it on forced liquidations—automated sell-offs caused by margin calls on leveraged positions across centralized platforms.
However, not everyone is buying the explanation. Crypto analyst Max Brown identified a suspicious transfer of 3.9 million OM tokens to OKX shortly before the crash, casting doubt on the official account. While there’s no concrete evidence the tokens were sold, the optics of such a move have raised eyebrows.
Diverging Views from Exchanges
The responses from major exchanges have only added to the confusion. Binance echoed Mullin’s explanation, attributing the collapse to cross-platform liquidations rather than insider dumping. OKX, however, expressed concerns over sudden changes to OM’s tokenomics and a wave of wallet activity that appeared coordinated.
This divergence highlights the need for transparency in token handling, especially during periods of high volatility.
Lack of Liquidity and Centralized Control Haunt OM
Mantra DAO’s tokenomics have come under renewed scrutiny. With most of the OM supply under team control and limited liquidity on exchanges, large movements can dramatically affect price.
The sharp selloff underscores the dangers of centralized token ownership. Whether or not insider selling occurred, the lack of decentralized governance and market depth left OM vulnerable to catastrophic price movements.
The incident has cast a shadow over Mantra DAO’s future and may serve as a cautionary tale for other projects relying on centralized distribution models.
