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The unexpected Mantra token (OM) crash 90 percent over the weekend has sparked a myriad of speculations. Nonetheless, some of the social media outlets have blamed the Switzerland-based trading firm Laser Digital, an affiliate of the Nomura Group, for its involvement in flash crash. Laser Digital, however, has strongly denied any implication, dissociating itself from accusations of ‘investor selling’, which it claimed helped contribute to the drop in price.
Laser Digital Rejects Allegations Laser Digital pushed back against the accusations on the social media site X, formerly known as Twitter, calling them “factually incorrect and misleading.” The company made things transparent by posting its controlled Mantra wallet addresses, which did not display any deposits into exchanges or activity of selling. The corporation ensured the market that it is committed to the project by stating that its OM holdings are locked.
Mantra token crashing caused volumes to rise in trading and price volatility. The token, which had previously traded at a high of US$6.14, has crashed to US$0.
57, effectively wiping out another US$5 billion from the market capitalisation. The drop has raised concerns of insider trading and comparison to the highly publicised breakdown of Terra’s LUNA token, although Laser Digital and Mantra both indicated denial of any direct participation in the incident. Mantra’s Reaction to Price Volatility John Patrick Mullin, co-founder at Mantra , published a blog on Monday, in defence of the project and disputing the accusations of negligence.
He posited that the flash crash was instigated by forced closures on centralised exchanges, which purportedly moved without notice, leading to a volatile price swing in illiquid hours. Mullin was adamant that the Mantra team and its investors were not at fault for the crash, assuring that all tokens were vesting under schedules published. The team also blamed centralised exchanges for opportunistic trading and demanded higher accountability in the industry to ensure such a phenomenon does not repeat itself in the future.
OM Token’s Future and Transparency Both Mantra and Laser Digital have continued to affirm their commitment to the project’s structure following the crash. As OM’s price remains considerably below the highs that preceded the crash, with discussions and community interaction still ongoing, the respective teams behind the token are busy trying to allay investor fears and give explanations. At the time of the latest update, OM is trading at US$0.
603. Despite the mess, Laser Digital and Mantra both want to restore confidence and stabilize the token’s value. But the incident has put the spotlight on the need for transparency and regulation in the cryptocurrency space, as both companies demand more responsibility from centralised exchanges.
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