Binance Explains Mantra (OM) Crash After 90% Price Plunge

Mantra (OM), a rising Real-World Asset (RWA) token, suffered a dramatic 90% price collapse over the weekend, plummeting from $6.31 to $0.70 in under an hour. The crash sparked outrage in the crypto community, with some users blaming Binance for the incident. In response, Binance issued an official statement on X to clarify the situation and defend its position.

According to Binance, the root cause of the OM token’s collapse was cross-exchange liquidations, not any failure on its part. The exchange highlighted that it had proactively taken risk control measures, including reducing OM leverage and flagging tokenomic changes as early as January 2025. These warnings were displayed directly on OM’s trading page to keep users informed of potential risks.

The token’s dramatic fall also triggered $74.52 million in liquidations in just 24 hours, briefly overtaking Ethereum in daily liquidation volume. Binance reassured users that it continues to monitor the situation and will take further steps to protect its trading community if needed.

This incident underscores the persistent risks in the digital asset space. Fraudulent projects and deceptive tactics, such as AI deepfakes mimicking reputable founders like Ripple executives and Cardano’s Charles Hoskinson, are becoming increasingly common. In Mantra’s case, concerns were also raised about the team allegedly controlling 90% of the token’s supply, though details remain unclear.

With scams and volatility still plaguing the crypto market, Binance, along with other top players like Shiba Inu and Ripple, continues to issue warnings to protect users. The Mantra collapse is a stark reminder for investors to stay vigilant and rely on verified sources for information.