Mantra is under scrutiny following the recent collapse of its OM token, which experienced a sharp decline on April 13.
Mantra is under scrutiny following the recent collapse of its OM token, which experienced a sharp decline on April 13. The fallout has raised questions about potential insider trading, particularly involving Laser Digital, a strategic investor in the project.
On April 14, Laser Digital publicly denied allegations that it transferred significant amounts of OM tokens before the crash.
According to blockchain analytics firm Lookonchain, 43.6 million OM tokens, valued at approximately $227 million, were moved to exchanges by 17 wallets just days before the collapse. Among these, wallets linked to Laser Digital were reported to have transferred 6.5 million OM tokens worth $41.6 million to the OKX exchange. This transaction took place on April 11, just days before the token plummeted.
In response to the allegations, Laser Digital, which is backed by Nomura, stated that the wallets in question do not belong to the firm. In a post on X, they asserted, “Laser has no involvement in the recent price collapse of $OM. Assertions circulating on social media that link Laser to ‘investor selling’ are factually incorrect and misleading.”
The situation is complicated by the actions of other investors. Shane Shin, a founding partner at Shorooq Partners, reportedly received 2 million OM tokens just hours before the crash.
However, a spokesperson for Shorooq emphasized that neither the firm nor its partners sold OM tokens in the lead-up to the incident, asserting their commitment to the long-term growth of Mantra.
As this crisis unfolds, both OKX and Binance have addressed the volatility surrounding the OM token. OKX founder Star Xu characterized the incident as a “big scandal to the whole crypto industry.” Meanwhile, Binance suggested that the crash may have been linked to “cross-exchange liquidations,” indicating a more complex market dynamic.
Mantra’s management has yet to comment on the implications of the token’s collapse or its impact on the recently announced $109 million Mantra Ecosystem Fund, leaving investors and stakeholders seeking clarity amidst the turmoil.
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