A new one was added to the altcoins that have experienced sharp declines in recent weeks. Accordingly, Mantra (OM), listed on Binance, fell by more than 80% in seconds.
While this decline has a shocking effect on investors, everyone is wondering why.
At this point, MANTRA CEO John Patrick Mullin said that no team member or partner had sold OM tokens, while claiming that the decline was due to the deliberate action of centralized exchanges against OM account holders.
While these claims continue to be debated in the crypto community, OKX founder and CEO Star Xu said that the MANTRA crash was a ‘big scandal’ and promised to release related reports soon.
Binance stated in its statement that initial findings showed that the sudden drop in the price of the OM token was due to liquidations between exchanges.
While the sharp decline in Mantra is still awaiting clarification, a statement came from Binance founder Changpeng Zhao (CZ).
CZ commented, “Like everyone else, I’m wondering ‘what happened to this?’ I didn’t know about the project until the crash.” He responded to questions about whether Binance was doing its due diligence on OM.
CZ stated that Binance has been paying due attention, referring to Binance’s statement regarding the OM token. In its statement, Binance stated that it has implemented various risk control measures, including reducing leverage levels, regarding the OM token since October of last year.
CZ said that neither CEXs nor DEXs should set up a listing process, access to all tokens should be allowed, and the investment process should be decided by users.
Regarding how to understand the risks of projects like OM, CZ said that the “number of real users” is generally a good indicator of the risk situation in altcoins.
Finally, CZ added that investors should focus on fundamentals such as user growth, revenue, and profitability when investing in altcoins rather than chasing hype or rumors.
*This is not investment advice.
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