Two of the most chaotic token explosions of the year – Movement Lab’s Movement Scandal and the collapse of the Mantra’s OM – are sending shockwaves through the crypto market production business.

In both cases, a rapid price crash unlocked the hidden actor, suspicious tokens, revealing a secondary contract that claimed blind market participants to blind.

Unlike traditional finance, where market manufacturers offer orderly bidding spreads in regulated venues, crypto market manufacturers often operate like high stakes trading desks.

They’re not just quoting prices. They negotiate pre-launch token allocations, accept lockups, structuring the liquidity of central exchanges, and sometimes fair or advised interests.

As a result, there is a dark space where liquidity regulations are caught up in private trade, toconemics and, in many cases, insider politics.

In late April, Coindesk Exposé showed that some Movement Lab executives had conspired with their own market makers to abandon the $38 million move in open markets.

Now, some companies are questioning whether they are too casual to trust counterparties. How do you hedge positions if the token unlock schedule is opaque? What happens when a handshake quietly overrides DAO’s suggestion?

“Our approach currently includes a broader preliminary discussion and educational sessions with the project team, ensuring a thorough understanding of the mechanisms of market production,” Hong Kong-based Metalpha’s Metalpha Making Division told Coindesk in an interview.

“Our trading structure has evolved to emphasize long-term strategic alignment against short-term performance metrics, which incorporates certain safeguards against unethical behaviors such as excessive token damping and artificial trading volumes.”

Behind the scenes, the conversation is intensifying. The terms of the transaction are being examined more carefully. Some liquidity desks are reassessing how they take on token risks.

Others are demanding more severe transparency – or walking completely away from dark projects.

“The project no longer accepts an honorable reputation at face value. We have witnessed whether even established players can exploit shadow allocations or engage in harmful token sales practices.” “The era of presumed trust concludes,” he argued.

Beneath the refined surface of the token is the announcement of the announcement and the sorting of market production agreements. There is another layer of cryptocurrency. In the secondary OTC market, locked tokens quietly exchange hands before they hit the public eye before they win the cliff.

Trading beneath these tables, often struck between early supporters, funds and syndicates, is currently distorting supply dynamics and findings of distorted prices, some traders say. And for market makers tasked with providing orderly fluidity, they are becoming increasingly opaque and dangerous variables.

“The secondary OTC market has changed the dynamics of the industry,” said Min Jung, an analyst at Presto Research, which runs the market production division. “When you look at tokens with questionable price actions like $layer, $om, $mov, etc., they are often the most aggressively traded in the secondary OTC market.”

“The entire supply and vesting schedule is skewed due to these out-of-market transactions, and because of liquid funds, the real challenge is to get a sense of when the supply is actually unlocked,” Jung added.

In a market where prices are fiction and supplies are negotiated in the back room, actual risk is not volatility for traders. I believe float is what the white paper and founders say.

Read more: Movement Lab secretly promises millions of people with tokens that promise to be advisors, leaked documentary show

• Mantra lost 90% of its value in one hour, wiping out $6 billion in market cap despite no confirmed attack on the network.
• On-chain data suggests large token movements before the crash, with some addresses possibly linked to investors—raising questions about insider activity.
• The team reportedly controlled up to 90% of the token supply, a figure that had previously raised concerns among some investors.

Mantra (OM), once considered a promising crypto project, dropped by 90% within a single day. The team has stated that the project remains stable.

Mantra is positioned as a Real World Assets (RWA) protocol, focused on the tokenization of crypto assets. Before the collapse on Apr. 13, OM ranked among the top five RWA tokens by market capitalization.

On April 13, OM’s price fell sharply from $6.10 to $0.40. The token lost almost all of its value. Market capitalization dropped by $6 billion in just 30 minutes. Less than two months earlier, on Feb. 23, OM had reached its all-time high of $8.99.

The crypto community quickly began comparing the crash to events like Terra (LUNA) or the collapse of FTX. The comparison stems in part from OM’s status as one of the top 30 cryptocurrencies by market cap. Some analysts have since pointed out that there were early warning signs around the project that were previously overlooked.

‘We Want to Assure You That MANTRA Is Fundamentally Strong’

On April 13, the official X account of the project posted that nothing had happened to Mantra and that the collapse was caused by “reckless liquidations.”

The project’s founder, John Patrick Mullin (JP Mullin on X), did not immediately respond, which raised concerns. On April 12, he shared a post suggesting he was on a long-haul flight from France to Seoul.

According to Mullin, the crash was linked to a liquidity issue and the actions of a single whale holding OM on a centralized exchange (CEX).

Social media posts began to circulate from investors reporting major losses following the OM crash. For example, Max Brown, who has over 80,000 followers on X, claimed he lost $1.3 million.

Another user, JB, addressed both the project and Binance, stating that he had invested $3.5 million in OM and was left with about $200,000.

Binance also issued a statement noting that a warning had been placed on the OM trading page since January 2025, citing dramatic changes in the tokenomics and increased token supply:

Since October of last year, Binance has implemented various risk control measures including reducing the leverage levels, with regard to the $OM token. Binance constantly monitors leverage levels and makes adjustments according to market conditions for risk controls to help reduce volatility.

Why Did the Price of Mantra Collapse?

As of now, there is no confirmed reason for what caused the collapse. Mantra maintains that the platform is operating normally and that there was no attack on the network. Meanwhile, parts of the crypto community suspect insider trading and point to the project team as a possible cause.

One of the major red flags cited is token distribution. According to Mantra’s official website, 16.8% of OM tokens are held by the team. Additional allocations are reserved for the Mirror Bucket and upgrade mechanisms, which are also considered internal. In practice, this places a large share of the supply under team control.

Lookonchain reported that 17 addresses moved a total of 43.6 million OM to exchanges just before the crash. Two of these addresses are believed to be linked to Laser Digital, one of Mantra’s known investors.

Laser Digital responded, stating that the wallets in question are not associated with the company and that their investment remains locked.

There is currently no official investigation by the Mantra team or by independent crypto analysts. However, many in the community believe the token may have been sold privately at a discount. Some estimates suggest the team controlled as much as 90% of OM.

There were also reports that the project’s Telegram channel had been deleted. However, it is currently active, and users continue to post messages.

What Are the Consequences?

Regardless of what happened with Mantra, this is a worrying signal for the crypto community. OM was one of the largest tokens by market cap, yet its price dropped by 90% in just one hour.

The crash has already drawn comparisons to major collapses like Terra (LUNA) and the FTX exchange. It’s also a reminder that red flags should not be ignored. Despite repeated warnings about the risks of a team controlling around 90% of the total supply, many investors continued to believe in the project and put money into it.

The post Mantra Price Drops 90% in One Hour — Another Crypto Collapse? appeared first on Cryptonews.

Blockchain intelligence platform Lookonchain says that tokens of the real-world asset (RWA) crypto project Mantra (OM) worth hundreds of millions of dollars were transferred to digital asset exchanges before a massive price crash.

Lookonchain says on the social media platform X that multiple wallets had sent millions of OM tokens to crypto exchanges prior to Mantra’s 90% price meltdown over the weekend.

Based on Lookonchain’s data, some of the exchanges that received the deposits include OKX and Binance.

“Who dropped the price of OM?

Before the OM crash(since Apr 7th), at least 17 wallets deposited 43.6 million OM($227 million at the time) into exchanges, 4.5% of the circulating supply.

According to Arkham’s tag, two of these addresses are linked to Laser Digital.

Laser Digital is a strategic investor in Mantra.” 

On Sunday, Mantra witnessed a sudden price meltdown, dropping from a high of $6.35 to a low of $0.37 – a whopping decline of 94% in just one day. Simultaneously, its market cap plunged from $6.11 billion to $683.3 million.

Crypto asset management firm Laser Digital says that it is not involved in the price collapse of Mantra.

“We want to directly address recent speculation around Laser Digital’s involvement in the price action of OM (Mantra)… Assertions circulating on social media that link Laser to ‘investor selling’ are factually incorrect and misleading…

On-chain movements of OM linked to Laser wallets have been flagged publicly. We want to be absolutely clear: Laser has not deposited any OM tokens to OKX. The wallets being referenced to OKX are not Laser wallets.” 

Meanwhile, Mantra CEO JP Mullin blames crypto exchanges for OM’s sudden price collapse, noting that the firms needlessly closed large positions during low-liquidity hours.

At time of writing, OM is trading for $0.595, down 32.5% in the past day.

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

The launch of the fund, dubbed the Mantra Ecosystem Fund (MEF), is dependent on the growing demand for stable, asset-backed digital products.

Today we are announcing the launch of MEF. It is a $188888 million investment initiative designed to drive real-world assets innovation, adoption and growth.

But we’re not doing this alone. We have major incubators, accelerators and capital partners. pic.twitter.com/oyecoj9qre

– Mantra | rwas token (@mantra_chain) April 7, 2025

Major players invested in the Mantra “MEF” Fund

Mantra, an L1 blockchain built exclusively for tokenized RWAS, has launched a “MEF” fund at X to accelerate the growth of network-built projects and startups and adoption of startups, following the official announcement from today (April 7).

Mantra’s press release states that investment opportunities will be provided through Mantra’s partner network and will deploy capital over the next four years among “high potential blockchain projects” around the world.

Supporting the fund is some of the largest institutional partners within. Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, Three Point Capital and Amber Group.

The launch of the Mantra Ecosystem Fund comes just a month after L1 became the first Defi/RWA platform to acquire a Virtual Asset Service Provider (VASP) license under Dubai’s Virtual Asset Regulator (VARA).

With each Coingecko, Mantra’s native token OM currently trades at $6.1 with a market capitalization of $5.9 billion, making it the 22nd largest cryptocurrency by market capitalization.

(Coinecko)

Explore: Does CME Gap save on BTC USD? Over $1 billion liquidated an hour before Crypto Black Monday

Tokenized RWA GEM No.1 – Landshare (Land)

Landshare (Land) gives holders the opportunity to invest in real estate through a user-friendly platform built on the BNB Smart Chain (BSC) chain.

This platform typically removes the stress and heavy financial requirements (such as massive downing) associated with real estate investments. The Landshare ecosystem provides users with plenty of opportunities to gain real estate exposure with their RWA assets.

Through Landshare, investors can wager Stablecoins to gain shares in rental income and property value valuations and participate in cloud assets real estate flips.

In particular, the Landshare platform is led by a well-developed NFT ecosystem. All NFTs minted in Landshare represent fractional ownership of real estate assets.

Owners can upgrade and repair virtual properties using NFT. This innovation is why many people are currently opting to invest in land.

Landshare represents a true microcapgem with a market capitalization of $3.1 million. The team, which is at this point nearly four years ago, is likely to see a blue chip project at this level that could attract attention by Mantra’s RWA ecosystem fund.

The land is currently trading at $0.55, down 9% that day. This is impressive considering that billions of dollars of ETH have fallen by nearly 20% over the same time frame.

(Coinecko)

Tokenization RWA GEM No.2 – ClearPool Finance (CPOOL)

ClearPool Finance (CPOOL) is a leading hybrid Defi/RWA Crypto platform with total value locked to its name (TVL) over $67 million. It also served as a decentralized credit market, with To-Date issued more than $770 million in loans in accordance with the website dashboard.

The ClearPool platform provides user access to multiple products. These include staking pools, credit vaults, facility debt pools and financial pools.

Just recently, through ClearPool Prime products, which serve as a KYC & AML-compliant network for wholesale borrowing and lending of digital assets, Floor Traders, a global trading company listed on EuroNext, secured a $10 million USDC loan.

This was a big milestone for the platform, using such a huge player, using the platform for a 10-digit Stablecoin loan.

However, ClearPool has been affected along with other markets, and as a result, it currently trades over $0.1. With each Coingecko, it has dropped by nearly 20% over the past month and by 5% over the past 24 hours.

With a tokenized RWA project that continues to build and thrive regardless of the wider market situation, this dip from CPOOL looks like a great point for cheap entries before the market reversal comes.

(Coinecko)

Discover: Best Meme Coins to Invest in April 2025 ICOS

For the latest market updates, please join us in the discrepancy in 99bitcoins news here

Postmantra Blockchain will launch a $108 million RWA fund.