{"id":23068,"date":"2025-04-15T17:24:39","date_gmt":"2025-04-15T14:24:39","guid":{"rendered":"https:\/\/forklog.com\/en\/insider-collusion-blamed-for-mantra-token-crash\/"},"modified":"2025-04-15T17:24:39","modified_gmt":"2025-04-15T14:24:39","slug":"insider-collusion-blamed-for-mantra-token-crash","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/insider-collusion-blamed-for-mantra-token-crash\/","title":{"rendered":"Insider collusion blamed for Mantra token crash"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>Researchers say a group holding roughly 90% of Mantra\u2019s total supply manipulated the token\u2019s price.<\/li>\n<li>The ~90% plunge in OM was triggered by a member of the colluding group breaking ranks.<\/li>\n<li>The project says it will disclose verified details once checks are complete.<\/li>\n<\/ul>\n<\/div>\n<p>Mantra\u2019s RWA token slumped due to manipulation by insiders controlling more than 90% of supply, according to researchers at OddEyeResearch.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">1\/ The <a href=\"https:\/\/twitter.com\/MANTRA_Chain?ref_src=twsrc%5Etfw\">@MANTRA_Chain<\/a> Foundation asserts that it was completely unrelated to the recent sell-off of <a href=\"https:\/\/twitter.com\/search?q=%24OM&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$OM<\/a> tokens, yet we suspect them of engaging in a market manipulative collusion, and the sell-off was caused by a small &#8216;betrayal&#8217; by a group member.<\/p>\n<p>Here&#8217;s our investigation. <a href=\"https:\/\/t.co\/2BT35n30i6\">pic.twitter.com\/2BT35n30i6<\/a><\/p>\n<p>\u2014 OddEyeResearch (@OddEyeResearch) <a href=\"https:\/\/twitter.com\/OddEyeResearch\/status\/1912015094835482891?ref_src=twsrc%5Etfw\">April 15, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On April 13, OM\u2019s price <a href=\"https:\/\/u1f987.com\/en\/news\/mantra-token-plummets-90-amid-allegations-of-reckless-liquidations\">plunged by about 90%<\/a> within a short span, wiping $5.5bn from the coin\u2019s market capitalisation. The community suspected a rug-pull by the team.<\/p>\n<h2 class=\"wp-block-heading\">Did the market manipulation go awry?<\/h2>\n<p>OddEyeResearch believes the crash was caused by a \u201csmall betrayal\u201d by a member of the group manipulating the asset.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cOn-chain evidence and circumstances indicate that a group, including the Mantra Foundation, was involved in a pump-and-dump scheme for the token. The dump appears to have been partially unintentional, as there are rumours of forced closures of OM positions,\u201d the experts noted.<\/p>\n<\/blockquote>\n<p>In their view, the sequence of events was as follows:<\/p>\n<ul class=\"wp-block-list\">\n<li>the Mantra Foundation planned to issue a new token, AUM, abandoning OM;<\/li>\n<li>a third party advised the team to keep the existing coin, because the odds of listing a new asset on Binance were far lower than the chances of \u201cpumping\u201d one already trading on the platform;<\/li>\n<li>the Mantra team agreed and started lifting the token\u2019s price on the exchange using provided resources;<\/li>\n<li>throughout 2023 the project increased OM supply on <span data-descr=\"centralised exchanges\" class=\"old_tooltip\">CEX<\/span>, continually adding OM liquidity on Binance via market makers GSR and DWF Labs. Initially, prices rose thanks to a low-base effect;<\/li>\n<li>in December 2023, before a pump that took the asset\u2019s FDV from $20m to $100m, the exchange float of OM fell by 20%. Unidentified addresses and Mantra Foundation wallets withdrew coins from Binance in the same pattern, then returned them a few months later;<\/li>\n<li>a similar pattern occurred during the February 2024 pump \u2014 after roughly 25% of OM was withdrawn from exchanges, the token\u2019s market capitalisation jumped from $200m to $1bn.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe believe the recent OM crash occurred because a member of the Mantra group broke the collusion and took unilateral action in the market, whether voluntarily or under duress. We know that a lender forced an entity to liquidate OM collateral. This may be the member of the alliance in question,\u201d said the OddEyeResearch analysts.\u00a0<\/p>\n<\/blockquote>\n<p>They stressed that restoring the \u201cprevious equilibrium\u201d will be extremely difficult because trust among insiders has been lost. In effect, this is a classic <a href=\"https:\/\/ru.wikipedia.org\/wiki\/%D0%94%D0%B8%D0%BB%D0%B5%D0%BC%D0%BC%D0%B0_%D0%B7%D0%B0%D0%BA%D0%BB%D1%8E%D1%87%D1%91%D0%BD%D0%BD%D0%BE%D0%B3%D0%BE\">prisoner\u2019s dilemma<\/a>, they added.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cMarket manipulation is a crime,\u201d \u2014 <a href=\"https:\/\/x.com\/ki_young_ju\/status\/1912065299186344425\">commented<\/a> CryptoQuant CEO Ki Young Ju on their findings.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\">Mantra denies it<\/h2>\n<p>Social-media users noted large OM deposits to exchanges in April. From 17 wallets, 43.6m tokens ($227m at the time) were sent\u20144.5% of the circulating supply. According to Arkham, two addresses were linked to Laser Digital, a strategic investor in Mantra.\u00a0\u00a0\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Who crashed <a href=\"https:\/\/twitter.com\/search?q=%24OM&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$OM<\/a>?<\/p>\n<p>Since April 7, at least 17 wallets have sent 43.6M <a href=\"https:\/\/twitter.com\/search?q=%24OM&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$OM<\/a> to exchanges \u2014 that\u2019s 4.5% of the circulating supply, worth $227M at the time.<\/p>\n<p>According to Arkham, 2 of those wallets are linked to Laser Digital, a strategic investor in the MANTRA project <a href=\"https:\/\/t.co\/2dAyAVxNR6\">pic.twitter.com\/2dAyAVxNR6<\/a><\/p>\n<p>\u2014 Crypto Live (@art_fx0) <a href=\"https:\/\/twitter.com\/art_fx0\/status\/1911872549941633355?ref_src=twsrc%5Etfw\">April 14, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>After the OM crash, OKX added a warning about heightened volatility and risks to the token\u2019s page. The exchange highlighted:<\/p>\n<ul class=\"wp-block-list\">\n<li>in October 2024, Mantra made \u201csignificant changes\u201d to tokenomics;<\/li>\n<li>since March 2025, there has been potentially coordinated activity involving large deposits to and withdrawals from various CEXs.<\/li>\n<\/ul>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">We noticed unusual volatility in <a href=\"https:\/\/twitter.com\/search?q=%24OM&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$OM<\/a> around 2 AM HKT.<\/p>\n<p>To mitigate trading risks, we&#8217;ve updated our risk controls and added a risk warning to the <a href=\"https:\/\/twitter.com\/search?q=%24OM&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$OM<\/a> trading pages.<\/p>\n<p>Please exercise caution and DYOR.<a href=\"https:\/\/t.co\/6GbUuHVWca\">https:\/\/t.co\/6GbUuHVWca<\/a> <a href=\"https:\/\/t.co\/3OjVMcnzqf\">pic.twitter.com\/3OjVMcnzqf<\/a><\/p>\n<p>\u2014 OKX (@okx) <a href=\"https:\/\/twitter.com\/okx\/status\/1911700362605764620?ref_src=twsrc%5Etfw\">April 14, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Mantra co-founder and CEO John Patrick Mullin, after the crash, insisted neither the team nor the project\u2019s investors were involved. He said the token\u2019s move was driven by \u201creckless forced liquidations\u201d initiated by exchanges.<\/p>\n<p>He promised to present a detailed report shortly. He also thanked early investors such as Shorooq and Laser Digital.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">1) A quick note to say how much I appreciate all the support the MANTRA team has received in the past 36+ hours. The support and kind words have come from many sources \u2014 from partners, investors, friends, and from the wider Web3 community. Thank you.<\/p>\n<p>\u2014 JP Mullin (?, ?\ufe0f) (@jp_mullin888) <a href=\"https:\/\/twitter.com\/jp_mullin888\/status\/1912089490119860245?ref_src=twsrc%5Etfw\">April 15, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe will do everything in our power to share accurate, timely and verified information as soon as we have it. We take our responsibility to the community very seriously. You will know the same as we do, right away,\u201d Mullin wrote.\u00a0<\/p>\n<\/blockquote>\n<p>To restore confidence, the project plans token-burn and buyback programmes, the Mantra chief added.<\/p>\n<p>Earlier in April, <a href=\"https:\/\/u1f987.com\/en\/news\/wintermutes-alleged-sell-off-linked-to-altcoin-plunge\">prices tumbled<\/a> for around a dozen illiquid coins. The dump was linked to activity by market maker Wintermute.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Researchers say a group holding roughly 90% of Mantra\u2019s total supply manipulated the token\u2019s price. The ~90% plunge in OM was triggered by a member of the colluding group breaking ranks. The project says it will disclose verified details once checks are complete. Mantra\u2019s RWA token slumped due to manipulation by insiders controlling more than [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":23067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[20,1150,1308,596],"class_list":["post-23068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-altcoins","tag-news-plus","tag-rwa","tag-tokens"],"aioseo_notices":[],"amp_enabled":true,"views":"72","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/23068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=23068"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/23068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/23067"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=23068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=23068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=23068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}