MANTRA (OM) is an innovative blockchain project aimed at integrating traditional financial markets with decentralized technologies. The main purpose of MANTRA Chain is to simplify and improve the efficiency of tokenization of Real World Assets (RWAs).
Unfortunately for the developers, in April 2025, Mantra was talked about not because the project became successful. The reason for discussions was the fall of its cryptocurrency OM by more than 90%. We tell you what Mantra is and why its token was so unlucky.
What is MANTRA (OM)
The MANTRA Chain is a specialized Layer-1 blockchain network designed to interact with real-world tokenized assets in a regulatory compliant manner.
Here are the main components of MANTRA Chain:
1. MANTRA DID (Digital Identity). Creates a digital identity in the form of a Soulbound NFT based on a KYC procedure.
2. MANTRA Guard. A compliance module that works in conjunction with the DID to manage access to various network services and assets.
3. MANTRA Token Service (MTS). Enables creation and management of tokenized assets with control and jurisdictional compliance features.
4. MANTRA DEX. A decentralized exchange with a liquidity pool based on the AMM (Automated Market Maker) protocol, providing seamless exchanges.
5. MANTRA LEEP (Liquidity Efficient Emissions Protocol). A protocol designed to address the problem of low liquidity of tokenized real assets.
Advantages of MANTRA Chain
- Ability to build multichain dApps based on CosmWasm.
- Compatibility of tokens with IBC inter-blockchain protocol.
- Fast transactions between leading Layer 1 (L1) blockchains.
OM Cryptocurrency
OM was originally launched in 2020 as an ERC-20 fixed-issue token. However, as of October 2024, OM became a native steaking and gas coin in the MANTRA Chain ecosystem.
Initially, two separate tokens (ERC-20 OM and token AUM) were intended to be used for different purposes in the ecosystem, but in February 2024, the community decided to move to a single OM token. This required the migration of ERC-20 tokens to MANTRA Chain's own blockchain network via the "Mirror Bucket" mechanism.
With the transition to MANTRA Chain, the tokenomics of OM was changed:
- Switching from a fixed issue to an inflation-linked model (3% per year).
- Increasing the total supply from 888,888,888,888 to 1,777,777,777,777,777 OM coins.
- Introduction of Mirror Bucket mechanism to securely transfer ERC-20 tokens to the MANTRA Chain blockchain via burning ERC-20 OM and issuing an equivalent amount of OM on the main network.
Here's what the token distribution looks like:
- 2.8% for airdrops.
- 67.5% for OM upgrade from Ethereum to mainnet.
- 12.8% to MANTRA Chain Association (ecosystem and investors).
- 16.9% to core team members.
OM Staking
OM staking allows users to actively participate in network security by being rewarded with additional coins. To participate, OM must be delegated to the network validators. The current annualized return (APR) is around 5.73%.
Thus, MANTRA (OM) is a comprehensive solution for integrating traditional assets into the blockchain environment, but the rate crash incident showed the importance of transparency and investor confidence in the project.
OM plummeting exchange rate incident
On April 13, 2025, token MANTRA (OM) has suffered a sharp drop, losing more than 90% of its value in less than an hour. OM's price collapsed from $6.13 to $0.45, triggering massive position liquidations and panic selling among investors. The market capitalization of the project decreased from $5.9B to $463M.
MANTRA developers said that the drop was caused by forced liquidations on centralized exchanges and not by the actions of the project team. However, participants of the crypto community drew attention to suspicious transactions and transfers of large amounts of OM to exchanges. Investors pointed to the possible involvement of the project team and the strategic investor, Swiss bank Nomura, in manipulating the exchange rate.
Amid the crisis, MANTRA's official Telegram channel was blocked, increasing investor discontent. As a result, OM's RSI (Relative Strength Index) fell to historically low levels, indicating a complete absence of buyers and the dominance of bearish sentiment.
Implications of the OM collapse
The collapse of OM caused a wave of discontent among investors, some of whom lost significant sums. There were threats of legal proceedings against the MANTRA team. There were also accusations of a lack of transparency in the project, changes in tokenomics, and delays in airdrops.
The project has previously been criticized for possible fraudulent activities in 2021, increasing distrust in the team and the project as a whole.
Will Mantra survive
The MANTRA team claims that the project remains fundamentally sound and continues to work on developing the ecosystem. However, restoring investor confidence will take time and transparent action on the part of the team.
OM's future will depend on the team's ability to effectively respond to the crisis, provide transparency, and restore community trust.
