The CEO of a real-world asset (RWA)-focused crypto project is alleging that centralized exchanges may have played a role in the sudden collapse of the project’s native token.
The market cap for top RWA project MANTRA (OM) plummeted by $5.431 billion on Sunday – declining from over $6.11 billion to $683.3 million in a matter of hours.
[adinserter block="1"]Mantra CEO JP Mullin alleges on the social media platform X that the crash was caused by unnamed exchanges seemingly working against the coin by needlessly closing large positions during low-liquidity hours.
“We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders. The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice. That this happened during low-liquidity hours on a Sunday evening UTC (early morning Asia time) points to a degree of negligence at best or possibly intentional market positioning taken by centralized exchanges.
Centralized exchange partners play an important role in providing liquidity to projects like ours. We work closely with them, however, they continue to exercise enormously high levels of discretion. When discretionary powers are exercised without due internal and external oversight, dislocations like what recently happened can and will occur, hurting both projects and investors alike.”
He also claims that the Mantra team did not take any actions that could have contributed to OM’s collapse
Mullins does not name the crypto exchanges he alleges triggered the loss of value, but he does rule out Binance.
“It was definitely NOT Binance.”
At time of writing, OM is trading at $0.51, down 91.2% in the last 24 hours alone.
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