Binance says Mantra’s collapse was caused by cross-platform liquidations and claims users were warned about tokenomics changes back in January.
Binance Explains Why Mantra (OM) Crashed 90% in Hours
Crypto giant Binance has clarified the reasons behind the sudden collapse of Mantra (OM). According to the exchange, the price plunge was primarily caused by cross-platform liquidations.
Binance claims it reduced OM’s leverage limits earlier and had notified users in January about upcoming changes in OM’s tokenomics through a public warning on the spot trading page.
OM Token Price Falls From $6.31 to $0.70
In just one hour, OM’s price plummeted more than 90%, from $6.31 to $0.70. This dramatic drop triggered over $74.5 million in total liquidations across platforms within 24 hours — even surpassing Ethereum in liquidation volume.
Binance stated it would continue monitoring the situation and take action to protect its users.
Growing Concerns Over Crypto Scams & Market Manipulation
The crypto space is increasingly plagued by fraudulent schemes. Recently, projects like Mantra, along with Ripple, Shiba Inu, and others, have warned about scams using AI deepfakes to impersonate developers or executives.
Although some reports suggest the Mantra team may have controlled up to 90% of OM’s total supply, Binance has not confirmed manipulation.
📉 Key Takeaways:
- Mantra (OM) crashed due to cross-exchange liquidations, according to Binance.
- Price dropped over 90% within an hour, triggering $74M+ in liquidations.
- Binance warned users in January about tokenomics changes.
- Crypto scams, including AI deepfakes, are becoming more common.