The cryptocurrency exchange behemoth Binance has recently cleared the air around Mantra’s price crash of over 90% in just a day. According to an X post by the exchange on Monday, OM price has crashed alarmingly due to massive cross-exchange liquidations. Meanwhile, other on-chain trackers have also highlighted massive token dumps into exchanges, which rationalizes the ongoing price slump.
OM token exchanged hands at $0.7162 at the time of reporting, erasing nearly 90% intraday.
Binance Issues Statement Amid Mantra (OM) Price Crash of 90%, Here’s What Traders Should Know
Binance revealed in an X post on Monday, April 14, that it is aware of the severe price crash witnessed by Mantra. The CEX informed that its initial findings conclude – “this crash is primarily attributed to cross-exchange liquidations.”
Since October of last year, the cryptocurrency exchange titan has implemented various risk control measures, such as reducing the leverage levels with regard to the OM token to protect its users from various market risks. Besides, since January of this year, the CEX has also issued a pop-up warning for this token on the spot trading page to inform users of the change in tokenomics.
Notably, the CEX underlined that Mantra’s supply has increased since the beginning of this year, which is an alarming factor when observing price movements. Overall, Binance’s recent release has offered traders and investors clarity on factors fueling the token’s current price slump.
Why Is Mantra (OM) Price Falling?
As mentioned above, Mantra’s price has fallen nearly 90%, even hitting an intraday bottom at $0.4222. This price crash is primarily attributable to massive OM selling, liquidations, and the project facing rug-pull allegations.
Tracker Lookonchain revealed in an X post that at least 17 wallets deposited $227 million worth of tokens into exchanges right before the price crashed recently. These massive dumps totaled nearly 4.5% of the asset’s circulating supply.
Subsequently, the price slump led to $66.97 million worth of liquidations in the past 12 hours, adding severe heat to the price. When coupled with Binance’s recent update on the matter, these factors triggered a highly bearish sentiment for the coin among investors.
Crypto Trader Loses $3.3M Amid Price Slump
Besides, a crypto trader got slammed with an alarming $3.3 million loss due to the recent price crash. Going by the name JB on X, this trader revealed that his initial investment of $3.5 million is now worth merely $200,000 due to the 90% drop.
“My intention was to support the future of RWAs,” the trader added, although the current scenario remains contrary. CoinGape reported that Mantra’s team blamed “reckless liquidations” as the primary reason for the price crash.
Meanwhile, another report revealed that crypto traders lost nearly $400 million amid the OM price crash. Altogether, broader market sentiments orbiting the coin remain highly bearish, with Binance’s update only fueling the fire more.
The post Binance Breaks Silence Amid Mantra (OM) 90% Price Crash appeared first on CoinGape.