**Update (4.13.2025 22:02:20):** This article has been updated to provide insights and clarifications from the Mantra team regarding recent events.

Massive Collapse of the Mantra (OM) Token

The price of the Mantra (OM) token, which is the native cryptocurrency of the Mantra blockchain focused on real-world tokenized assets, has experienced a staggering collapse of over 90% within a mere 24 hours. The sudden drop has raised alarms among traders and investors in the cryptocurrency community.

On April 13, the Mantra token plummeted from a relatively stable price of approximately $6.3 to an alarming low of below $0.50. This dramatic decline translated into a loss of over 90% of its previously impressive market capitalization of $6 billion. Market participants and analysts are now scrambling to understand this phenomenon.

Some traders have characterized this incident as an apparent “rug pull,” a term used to describe a fraudulent maneuver in which the developers, who often hold large portions of a cryptocurrency, secretly withdraw funds, causing the value to plummet. One concerned market investor, Gordon, expressed his worries in a public post: “[The] team needs to address this or OM looks like it could head to zero, biggest rug pull since LUNA/FTX?”

As it stands, the exact reason for this significant collapse in the OM token price remains shrouded in mystery. Cointelegraph proactively reached out to the Mantra team for clarification regarding the OM token’s downfall; however, as of the time of publication, a response had yet to be provided. This uncertainty only adds to the anxiety among investors who are left wondering about the future of the token and the project as a whole.

This incident of sudden price collapse follows a series of high-profile token catastrophes and cybersecurity breaches that have rocked the cryptocurrency market in early 2025. Notable examples include the downfall of the Libra memecoin and the devastating $1.4 billion hack that targeted Bybit, further contributing to billions in investor losses during this turbulent period.

Related: Mantra unveils $108M fund to support real-world asset tokenization and DeFi initiatives.

The Mantra Team Responds to Concerns

In response to the alarming situation regarding the OM token, Mantra co-founder JP Mullin took to social media to address the investors’ concerns. He assured the community that their Telegram group remains active and that the tokens held by the Mantra team are secure, with no intentions to abandon the project.

“We are here and not going anywhere,” Mullin affirmed in a recent post on X, providing a verification address for public scrutiny of the team’s OM tokens, illustrating their transparency and commitment to the project.

Moreover, the Mantra Team stated that the price implosion of OM was “triggered by reckless liquidations,” asserting that these events are not a reflection of any wrongdoing on their part. This clarification may provide some relief to investors, but the market remains cautious as the situation unfolds.

Mantra’s Recent Tokenization Initiatives in the Middle East

Despite the recent turmoil, it is noteworthy that in January 2025, Mantra entered into a landmark deal with the investment conglomerate DAMAC, worth an impressive $1 billion, to tokenize a range of assets, including real estate, data centers, and other physical properties on the Mantra blockchain. This significant venture illustrates the team’s ambitions and the potential for expanding the use of blockchain in real-world asset management.

Additionally, in February 2025, Mantra achieved a crucial milestone by acquiring a virtual asset service provider license from Dubai’s Virtual Assets Regulatory Authority (VARA). This license paves the way for Mantra to operate as a digital asset service provider within the United Arab Emirates (UAE), allowing them to engage in activities such as running crypto exchanges, broker-dealer services, management, and investment consulting in the region.

The expansion into the UAE market has been primarily driven by increasing demand from real estate investors and developers seeking innovative funding solutions. The combination of near-instant finality for transactions involving tokenized assets, reduced costs, and the capability for cross-border transactions are some of the key reasons investors have expressed interest in utilizing blockchain technology for securing investments and facilitating capital formation.

How AI legalese decoder Can Assist

Amidst the unfolding situation with the Mantra token and its significant price decline, it is important for investors and stakeholders to fully understand the legal implications surrounding their investments and any potential recourse they may have. This is where the **AI legalese decoder** can play an invaluable role.

The AI legalese decoder offers a sophisticated yet user-friendly platform that can help individuals parse complicated legal documents and disclosures often associated with cryptocurrency investments. By simplifying complex legal jargon into plain, understandable language, the tool empowers investors to make informed decisions based on a clear understanding of any risks or obligations involved.

In situations of potential fraud or loss, such as the recent concerns surrounding the OM token, utilizing the AI legalese decoder can equip stakeholders with the necessary knowledge to assess their legal standing, rights to recourse, and actions they may consider taking. This enhanced understanding can prove invaluable as the situation continues to develop and as investors navigate through uncertainty.