The cryptocurrency Mantra ($OM), once positioned as a flagship of the RWA (Real World Assets) sector, has found itself at the center of a massive scandal that has shaken confidence in the entire industry. The fall of $OM is not just a price collapse — it’s a textbook example of manipulation, lack of transparency, and shattered expectations.
What is Mantra ($OM)?
Mantra is a blockchain platform created to tokenize real-world assets (RWA). The project’s goal is to provide access to traditional financial instruments such as real estate, bonds, and funds via blockchain technology. The OM token serves as the core asset of the ecosystem, used for governance, staking, and transactions.
The project claimed to operate with high levels of transparency, regulatory compliance, and partnerships in traditional finance, which attracted many investors. However, the events of Q1 2025 dramatically changed perceptions of Mantra.
The Airdrop That Turned Into a Trap
It all began with a loud announcement: the Mantra team promised to distribute 50 million OM tokens via the Galxe platform. At the time, the token was priced around $0.70, and the campaign generated massive interest. Users eagerly completed tasks, expecting a fair reward.
But when OM’s price suddenly skyrocketed to $8, the team unexpectedly changed the participation criteria. The new rules excluded 99.99% of participants, effectively erasing any chance for most to receive tokens. This sparked outrage in the community, but what made things worse was that team members and the founder began mocking participants, posting sarcastic messages on social media.
Manipulations and Collapse: $8 → $0.80 in 4 Hours
The peak of the drama came when the OM token crashed from $7 to $0.80 in under an hour, wiping out over $6 billion in market capitalization. It started with a suspicious transaction: one wallet sent 3.9 million OM to the OKX exchange. It was later discovered that the wallet was linked to the project team.
This triggered panic — investors realized a major sell-off was underway. Especially since the Mantra team controlled around 90% of the token supply and had previously been accused of hidden changes to tokenomics, delayed airdrops, and price manipulation through market makers.
Add to that rumors of OTC deals (tokens sold to investors at discounted prices), and you get the perfect storm. As the price dropped below these insiders’ entry points, they began mass selling. That triggered stop-losses, liquidations of leveraged positions, and liquidity vanished within minutes.
A Blow to the Whole Sector’s Credibility
The RWA sector had long been considered one of the most promising trends in the crypto space. The ability to tokenize real-world assets opened doors to traditional capital. But Mantra’s actions delivered a massive blow not just to the project’s reputation — but to the entire industry.
Mantra demonstrated how lack of transparency, greed, and cynicism from a team can destroy trust in even the strongest market trends. Instead of becoming a model for RWA integration on the blockchain, the project became a symbol of failure and manipulation.
A Lesson for Crypto Investors
The Mantra story serves as a powerful reminder for every crypto investor:
– Always check who controls the token supply
– Be wary of projects that constantly delay promises
– If a price seems unnaturally stable, it may be artificially managed
– And most importantly — never invest in a project that lacks transparency
The RWA sector still has potential, but it deserves responsible, honest projects — not ones like Mantra.
