Holy crap, what a ride! The MANTRA (OM) token took a nosedive overnight, losing a jaw-dropping 90% of its value. And let me tell you, this wasn’t some organic market correction. According to MANTRA themselves, it was a freaking reckless liquidation on a centralized exchange that triggered this chaos.
They’re pointing fingers at a negligent or potentially manipulative move by the exchange, happening during the quietest hours of the Asian trading session, making the whole thing even more sus. MANTRA is adamant this wasn’t an inside job – no team members or big investors dumping their bags, they say.
They insist that the tokenomics remain intact, with tokens still locked and vesting schedules unchanged. Founder JP Mullin even jumped in to clarify it wasn’t Binance behind this mess – though that doesn’t exactly ease the sting, does it?
Let’s break down what’s happening here and why it matters:
Centralized exchanges hold user funds and can liquidate positions if margin requirements aren’t met. Typically this is to prevent cascading losses.
Liquidation events, especially when massive, can seriously destabilize a token’s price. Low liquidity amplifies this effect.
‘Reckless liquidation’ implies the exchange acted too aggressively, or without proper checks, endangering users. This affects trust.
MANTRA’s situation highlights the risk of relying on centralized exchanges and the importance of transparency. It’s a harsh reminder that even promising projects aren’t immune to external shocks.
