upstart mantra's om token plunges 90% in hours, sparking concerns and conspiracy theories

The cryptocurrency market witnessed a dramatic event on Monday as Upstart Mantra's OM token, a project focused on real-world asset tokenization, experienced a staggering 90% price drop within hours, triggering comparisons to Terra's Luna collapse and fueling speculation within the crypto community.

The swift decline, from approximately $60 to below $0.40 between Sunday evening and early Monday morning, occur during a period of typically lower liquidity in crypto markets – a scenario where large trades can significantly impact prices.

Mantra's team addressed the situation via a post on X (formerly Twitter), stating that the project's fundamentals remn strong and attributing the event to "reckless liquidations" unrelated to the project itself. They emphasized that the actions were not initiated by their team and promised further details as their investigation progresses.

Mantra's platform allows users to tokenize real-world assets (RWAs) such as real estate and commodities, providing regulated dial investment opportunities in tangible assets. The OM token facilitates transactions and governance within the Mantra eystem.

The project had previously garnered significant attention, forming a $1 billion partnership with Damac Group, a UAE-based conglomerate, in January 2025, involving the tokenization of assets including real estate, hospitality, and data centers. OM's price had surged over 400% in 2024, largely under the radar of mainstream crypto media, piquing investor interest.

The sudden and drastic price drop, however, has raised serious concerns among investors. While the Mantra team acknowledged the event and is actively investigating the cause, the incident has highlighted the volatility inherent in the crypto market and the potential risks associated with even seemingly successful projects. The team's statement emphasized their commitment to transparency and providing updates as soon as possible.

Co-founder John Patrick Mullin suggested the price crash may have resulted from a centralized exchange liquidating large OM positions, impacting market exposure across the board. Mullin's X post specifically alleged that a "reckless closure" of OM accounts by a centralized exchange triggered the volatility. The timing and scale of the event, he claimed, indicated a sudden and unannounced liquidation of significant account positions. He further accused the exchange of "deliberate market manipulation."

The incident resulted in over $50 million in liquidations across OM-related futures contracts, a record-breaking figure. The situation underscores the ongoing debate surrounding the risks of centralized exchanges and their potential influence on the crypto market.