MANTRA Token Falls 80%, $5B Market Cap Wiped Out in 24 Hours

MANTRA token price plunged more than 80% in the past 24 hours.
The team blames impulsive liquidations and guarantees their token holdings remain in custody.
The saying, “There’s never a dull day in crypto,” proves true again and again. When the MANTRA token price went down over 90% in only one hour yesterday, it became clear that the community started to show interest in this layer 1 token. The reason for the token crash is still unclear.

The MANTRA token is currently trading at $0.8663 at the moment, with an 86.11% drop over the last 24 hours. It was trading above $6 yesterday before going into a free fall, which caused it to crash by close to 90% to $0.4325. This incident wiped out a tad more than $5 billion in market capitalization from the crypto market. However, the 24 h trading volume increased by 2,937%.

The reasons behind this MANTRA crash are still unclear, and it is worrying that the team is being suspected of being responsible. Crypto multi-millionaire Gordon commented on the situation and called upon the team to resolve the issue. He did not believe that the team held a large supply of the token and sold out, which sparked the current downturn.

MANTRA Team Blames Reckless Liquidations for Token Crash

MANTRA team co-founder JP Mullin responded in a post on X earlier today. He explained that their Telegram account was not deleted. Busting all the myths surrounding a team sell-off, he posted the team wallet address for the crypto community to verify their MANTRA token holdings.

Mullin assured that the team is actively looking for the cause of this price crash and why these huge liquidations happened. Even the official X account of MANTRA stated that the MANTRA token is fundamentally strong. It indicated that the price downturn is mainly driven by careless liquidations.

The founder and the team responded quickly to the situation, but the event caused worry for MANTRA token holders. This might result in further token sales, which could lead to a surge in selling pressure on the asking price.

MANTRA, however, has a TVL of only $3.28 million. Its fully diluted value (FDV) is $1.59 billion, as per DefiLlama. This is a significant issue for a first-layer blockchain such as MantraChain. On the other hand, an X user by the name of Insomniac tracked down some wallet addresses that recently made large transactions of OM tokens. These transactions may be token sales and may also be contributing to the current price drop.

The MANTRA token crash is a significant bearish development after some recent controversies, such as the Libra memecoin and the Bybit hack. It will likely take some time to understand what triggered the crash and what action they take to prevent cascading effects.