- Mantra (OM) token has crashed over 90% in 24 hours, plummeting from $6.3 to under $0.50, wiping out most of its $6 billion market cap.
- Some traders have speculated this could be a “rug pull,” though the exact cause remains unclear with no official statement from the Mantra team.
- The collapse comes amid Mantra’s recent expansion in the UAE, including a $1 billion asset tokenization deal with DAMAC and obtaining a regulatory license from Dubai‘s VARA.
Mantra token experienced a catastrophic price collapse of more than 90% within a 24-hour period on April 13. The native cryptocurrency of the Mantra real-world tokenized asset blockchain saw its value plummet from approximately $6.3 to below $0.50, effectively erasing over 90% of its previous $6 billion market capitalization.
Market speculation has begun to swirl around the sudden devaluation, with some traders suggesting the possibility of illicit activity. Investor Gordon commented on the situation, stating: "[The] team needs to address this or OM looks like it could head to zero, biggest rug pull since Luna/FTX?" Despite these allegations, the exact cause behind the token’s collapse remains unconfirmed, with the Mantra team not responding to inquiries from Cointelegraph by publication time.
This incident adds to a series of recent cryptocurrency market disruptions, including the Libra memecoin failure and the $1.4 billion Bybit hack, which collectively have cost investors billions of dollars in the first months of 2025.
Mantra’s Middle East Expansion Efforts
Prior to this crisis, Mantra had been making significant inroads into the Middle Eastern market. In January 2025, the company partnered with investment conglomerate DAMAC in a $1 billion agreement to tokenize various assets including real estate and data centers on the Mantra blockchain.
The following month, Mantra secured a virtual asset service provider license from Dubai’s Virtual Assets Regulatory Authority (VARA). This regulatory approval enabled the company to operate digital asset services in the UAE, including crypto exchanges, broker-dealer services, and investment consulting operations.
Real-World Asset Tokenization Push
Mantra’s expansion in the UAE was reportedly driven by strong demand for tokenized products among real estate investors and developers seeking alternative funding methods. The appeal of blockchain-based assets includes near-instant finality times for transactions, reduced operational costs, and seamless cross-border functionality.
These benefits had positioned tokenized real-world assets as an attractive option for investors looking to secure investments and facilitate capital formation before this dramatic market event occurred.
The collapse of the OM token represents one of several high-profile cryptocurrency market failures in early 2025, raising further questions about stability and oversight in the rapidly evolving digital asset space.
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