Mantra’s native token, OM, has suffered a catastrophic crash, plunging more than 90% within just 24 hours. The sudden price drop saw the token fall from around $6.30 to below $0.50 on April 13, wiping out over $6 billion in market capitalization.

Speculation of a potential “rug pull” has emerged, with traders comparing the collapse to infamous disasters like LUNA and FTX. One market investor voiced concerns on X, stating that if the Mantra team doesn’t respond, OM could be “the biggest rug pull since LUNA/FTX.”

Mantra co-founder JP Mullin quickly addressed the panic, assuring users that the team remains active and the Telegram community is still online. Mullin confirmed that team-held tokens remain under custody and even shared a verification address. The project insists that the price crash was caused by "reckless liquidations," denying any internal wrongdoing.

This collapse comes just months after Mantra announced a $1 billion partnership with DAMAC to tokenize real-world assets in the Middle East, including real estate and data centers. In February 2025, Mantra secured a license from Dubai's Virtual Assets Regulatory Authority (VARA), granting it legal authority to operate crypto services in the UAE.

Mantra had been gaining traction in the region thanks to investor interest in blockchain-powered asset tokenization. Benefits such as reduced costs, faster settlement, and improved cross-border accessibility made the platform attractive to developers and institutions.

Now, the OM crash casts a shadow over these developments, raising tough questions about investor trust, market volatility, and the future of tokenized real-world assets.