- Laser Digital, part of the Nomura Group, has denied involvement in the Mantra token’s 90% flash crash.
- The firm shared wallet addresses to prove it hadn’t conducted selling activity linked to the crash.
- Before the crash, 17 wallets deposited 43.6 million OM tokens to exchanges, triggering panic selling as the Mantra team controls 90% of circulating supply.
Laser Digital has firmly denied any involvement in the massive flash crash of the Mantra (OM) token, which saw the cryptocurrency plummet by 90% in value. The Switzerland-based trading firm, which operates as part of the Nomura Group, released a statement on social media refuting claims that linked them to the selloff that devastated the token’s price.
“Assertions circulating on social media that link Laser to ‘investor selling’ are factually incorrect and misleading,” the firm stated on X, addressing rumors that had been spreading throughout cryptocurrency communities.
To support their denial, Laser Digital took the unusual step of publicly sharing their controlled Mantra wallet addresses. According to the firm, none of these wallets show any deposits to exchanges or selling activity that could have contributed to the crash.
The Crash Investigation Continues
While Laser Digital has distanced itself from the event, questions remain about what actually caused the Mantra token’s dramatic collapse. The Mantra team has attributed the crash to broader market pressures and forced position closures by centralized exchanges, suggesting these actions triggered a liquidation cascade that amplified the selling pressure.
OKX, a major cryptocurrency exchange, offered its own explanation, stating that the extreme volatility resulted from a spike in trading volume combined with an initial price decline that began on exchanges outside of OKX before spreading throughout the wider market.
Suspicious Pre-Crash Activity
Data from the blockchain reveals potentially suspicious activity preceding the crash. According to the information provided, 17 wallets deposited 43.6 million OM tokens (valued at approximately $227 million) to exchanges shortly before the price collapse. This large movement of tokens triggered panic among other holders, particularly concerning since the Mantra team controls about 90% of the token’s circulating supply.
The OM token is currently trading at $0.57, representing a 90% drop from its day high of $6.14. Trading volume has surged dramatically by 3,425% to $2.6 billion, according to data from CoinMarketCap, indicating extraordinary market activity surrounding the token in the aftermath of the crash.
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