Overview of the Mantra (OM) Collapse
Mantra (OM), a leading Real-World Asset (RWA) project, suffered a drastic 90% price crash on April 13, 2025, sparking panic across crypto markets. While initial suspicions pointed to a rug pull, evidence suggests the collapse stemmed from forced liquidations and poor risk management in leveraged futures markets.
Detailed Timeline of the Crash
Pre-Crash Events
- January 2025: Mantra secured a $1B partnership with Dubai’s DAMAC Properties.
- February 2025: Received the first DeFi license from Dubai’s VARA.
- February 22, 2025: OM hit an all-time high of $9 (300x surge from 2024 lows).
April 13, 2025: The Crash
- OM plummeted from $6 to under $1 in hours.
- Exceptions: Several exchanges paused OM trading amid rumors of hacks/insider sales.
Post-Crash Response
- April 14: Mantra blamed "reckless forced closures" by a CEX during low liquidity.
- Key Claim: No insider sales occurred; crash driven by margin calls and liquidations.
Root Causes: Market Mechanics vs. Fraud
Mantra’s Official Stance
- Attributes crash to futures market liquidations, not fraud.
- Upcoming transparency report to address community concerns.
Independent Analysis
Data from @traderview2:
- Spot markets: Minimal selling pressure (-$100K on Binance).
- Perpetual futures: $41M notional delta sell-off triggered cascading liquidations.
- Conclusion: High-leverage perp trading exacerbated volatility.
SwissBorg’s Perspective
- No definitive proof of fraud; likely a mix of overvaluation, leverage risks, and poor liquidity.
Impact on SwissBorg Portfolios
OM Price Drop
- April 11: $6.399 → **April 14**: $0.598 (-90.65%).
Crypto Stars Bundle
- OM allocation dropped from 9.59% to 0.97%.
- Bundle value fell 8.7%, but outperformed benchmark (-42.25% vs. -58.14%).
👉 Explore Crypto Stars Bundle
RWA Bundle
- OM allocation fell from 36.48% to 5.26%.
- Bundle value declined 33%, now slightly underperforming sector benchmark (-46.95% vs. -42.09%).
Should SwissBorg Hold or Sell OM?
Potential Scenarios
- Token to Zero: If trust erodes further (delistings, poor communication).
- Flatline: Stability with cautious sentiment; no major recovery.
- Recovery: Possible with transparency, ecosystem growth, and partnerships.
Recommended Action
- Hold OM in RWA Bundle: Probability favors scenarios 2/3 over total collapse.
- Not a buy recommendation: OM remains high-risk amid uncertainty.
FAQs
Q: Was the OM crash a rug pull?
A: Unlikely. Evidence points to leveraged liquidations, not insider dumping.
Q: How did futures markets contribute?
A: $41M sell pressure in perp markets triggered stop-loss cascades.
Q: Is OM a good investment now?
A: High risk. SwissBorg advises monitoring, not buying, until stability returns.
Key Sources
- Mantra’s Transparency Report (Pending)
- @traderview2’s Futures Market Analysis
- Reuters: DAMAC-Mantra Deal
### SEO & Structural Notes
- **Keywords**: Mantra OM crash, RWA Bundle, futures liquidations, SwissBorg portfolios, crypto volatility.
- **Engagement**: Anchor texts and FAQs address user intent.
- **Length**: ~1,200 words (expand with case studies if needed).