Learn why Mantra DAO (OM) crashed on April 13, losing 98% of its value within one hour, and why it is considered a scam cryptocurrency.

Key Takeaways

  • MANTRA (OM) lost 98% of its value in under an hour, decimating its market cap dramatically.
  • Accusations emerged that an insider group, known as the “Kabal team,” executed a massive token dump.
  • Long-ignored warnings about supply inflation and centralized control contributed to the project's instability.
  • Official channels were shut and leadership remained silent during the crisis, leaving the community in the dark.

In an unprecedented market event, the real-world asset token MANTRA (trading as OM) experienced a devastating collapse that has left investors reeling. The MANTRA crash, as it’s being called in crypto circles, saw the token lose a staggering 98% of its value in less than an hour, with more than $6 billion in market capitalization effectively vanishing into digital thin air, according to data verified on CoinMarketCap.

The catastrophic price action sent OM plummeting from its position near $6 per token to a mere $0.57, happening so rapidly that most investors had no opportunity to react. 

The velocity of the collapse was particularly brutal—by the time trading platforms updated their charts to reflect the new reality, MANTRA’s total valuation had already cratered from $6.09 billion to just $699 million. 

The sheer speed of the downturn meant that even experienced traders with sophisticated tools found themselves unable to execute exit orders before their holdings were decimated.

Still, on the official Mantra DAO (OM) website there is no statement yet, and on the official CryptoCurrency channel – people are questioning whether other altcoins will be safe.

What happened?

The Mantra DAO crash didn’t happen immediately, as you might think – here is what happened.

  • April 2, 2025: A Mantra DAO smart wallet burned 21.229M OM tokens (~$132M), part of a total burn of 84.019M OM valued at $524M.
  • Today – April 13, 2025 (within one hour): OM’s price plummeted from nearly $6 to $0.57, reducing its market cap from $6.09B to $699M (over $6B erased).
  • Immediately After: Accusations on X targeted the “Kabal team” for a sudden token dump, while the official Telegram group closed to new members and the CEO remained unresponsive.

Previous Major Crypto Scams

The Mandra DAO incident follows a long lineage of similar scams that have plagued the cryptocurrency ecosystem:

BitConnect (2016-2018)

One of the most notorious crypto Ponzi schemes that promised investors up to 40% monthly returns through a proprietary trading bot. The platform collapsed in January 2018, wiping out approximately $2.6 billion in investor funds.

OneCoin (2014-2017)

Led by self-proclaimed “Crypto Queen” Ruja Ignatova, OneCoin scammed investors out of an estimated $4 billion globally before being exposed as having no actual blockchain or tradable cryptocurrency.

PlusToken (2018-2019)

This wallet app and exchange platform primarily targeted Asian investors, amassing over $6 billion in cryptocurrencies before its founders disappeared. The subsequent dumping of stolen Bitcoin contributed to market-wide price suppression.

What Happens Next for Mandra DAO Victims

For those affected by the Mandra DAO Drop scam, the road ahead is unfortunately predictable based on previous crypto scams. Initially, there will likely be a fragmented response as victims organize through social media channels and forums to share information and consolidate evidence.

Blockchain forensics companies will attempt to trace the stolen funds, which will likely be moved through various mixers and cross-chain bridges to obscure their origin. Law enforcement agencies may open investigations, but recovery of funds remains statistically unlikely given the pseudonymous nature of blockchain transactions and potential jurisdictional challenges.

Various crypto security experts are recommending affected users to immediately revoke any remaining smart contract permissions through tools like Revoke.cash, disconnect hardware wallets from compromised software, and document all transactions for potential legal proceedings.

The Mandra DAO incident serves as yet another painful reminder that in the rapidly evolving crypto space, extraordinary vigilance is required, particularly when interacting with new projects offering seemingly generous incentives. As the regulatory landscape continues to develop, investors can only hope that strengthened oversight and improved security measures will eventually reduce the frequency and impact of such scams.