Market Manipulation Claims Swirl Around Mantra Token’s Sharp Plummet
In a surprising twist of fate, JP Mullin, the head of the digital currency venture Mantra, has alleged that centralized cryptocurrency exchanges may have played a role in the drastic downfall of the project’s own token, OM. In just one day, Mantra’s market value plummeted from around $6.11 billion to a meager $683.3 million, resulting in a staggering loss of $5.43 billion.
Mullin took to the social platform X to voice his worries regarding the abrupt decline of the token. He stated that the significant value drop was triggered by undisclosed exchanges that supposedly forced the closure of large OM positions without prior notice during periods of low trading volume. “We have confirmed that the downward spiral of OM was catalyzed by heedless forced closures initiated by centralized exchanges on OM account holders,” Mullin claimed. He criticized these exchanges for their lack of supervision and their potentially reckless or deliberate actions.
He delved further into the dynamics between Mantra and its centralized exchange collaborators, highlighting their pivotal role in maintaining liquidity. Nonetheless, he expressed apprehension about the “excessively high levels of authority” wielded by these collaborators. Mullin argued that when such authority is exercised without sufficient internal or external safeguards, it can result in market disruptions that ultimately negatively impact both projects and their backers.
Crucially, Mullin stressed that the Mantra team did not partake in any activities that could have sparked the token’s collapse. While he refrained from explicitly naming the responsible exchanges, he categorically disproved any involvement from Binance, affirming, “It was definitely NOT Binance.”
At present, the OM token is being traded at $0.51, showcasing an alarming 91.2% plunge within a span of 24 hours.
The repercussions of Mullin’s accusations shed light on broader concerns within the cryptocurrency sector regarding the sway of centralized exchanges over token valuation and liquidity. Such incidents can weaken investor trust and raise doubts about regulatory supervision in the swiftly evolving crypto realm.
To wrap up, the sharp decline in Mantra’s token worth, combined with allegations of market manipulation, underscores the innate hazards linked with digital assets, particularly concerning the influence of centralized exchanges. Investors are advised to stay vigilant and conduct thorough research before embarking on cryptocurrency dealings, given the market’s volatility that could result in substantial financial setbacks.
