Published by FinTelegram, April 14, 2025
Executive Summary
The Mantra (OM) token, native to the MANTRA Chain—a Layer 1 blockchain focused on real-world asset (RWA) tokenization—suffered a catastrophic 90% price collapse on April 13, 2025, erasing over $5.5 billion in market capitalization within hours. Rumors have circulated within the crypto community, particularly on platforms like X, suggesting that a hack of the Founders Wallet may have triggered the crash. This report examines the latest findings, on-chain data, and official statements to assess the validity of these claims and provide clarity on the collapse’s root causes.
Background
MANTRA Chain, founded by John Patrick Mullin, Rodrigo Quan Miranda, and Will Corkin, is a Cosmos SDK-based blockchain designed for compliant RWA tokenization. The OM token powers its ecosystem, facilitating staking, governance, and trading of tokenized assets. Prior to the collapse, OM had seen significant growth, reaching a peak price of $6.33 and a market cap of approximately $6 billion, bolstered by high-profile partnerships, including a $1 billion tokenization deal with Dubai’s DAMAC Group and a $108 million ecosystem fund.
On April 13, 2025, the token plummeted to below $0.50, sparking widespread speculation. Among the theories, a rumored hack of the Founders Wallet gained traction, fueled by allegations of insider dumping and market manipulation. This update analyzes the evidence to separate fact from speculation.
The Collapse: What Happened?
- Price Movement: On April 13, OM dropped from $6.33 to under $0.50 within an hour, wiping out over 90% of its value. By April 14, the price stabilized around $0.83, reflecting a partial recovery but still an 87% loss from its pre-crash value.
- Market Impact: The crash triggered $68.86 million in liquidations, with long positions losing $49.68 million and shorts losing $19.18 million. The market cap fell from $6 billion to approximately $485 million at its lowest.
- Community Reaction: Posts on X and Reddit accused the Mantra team of orchestrating a “rug pull,” with some claiming the team dumped 90% of the circulating supply and temporarily shut down their Telegram channel. Others speculated about a Founders Wallet hack as the catalyst.
Investigating the Founders Wallet Hack Rumors
The theory that a hack of the Founders Wallet caused the collapse stems from community speculation rather than verified evidence. Here’s what the latest findings reveal:
- No Evidence of a Hack:
- Blockchain analytics platforms like Lookonchain, SpotOnChain, and Arkham Intelligence have not reported any unauthorized access or unusual outflows from the Founders Wallet (publicly verifiable at address: mantra1yejpacug78zuqkzwwuc94c0a2al4mz4yfqquam).
- Mantra’s co-founder, John Patrick Mullin, stated on April 13 that team tokens remain locked and subject to vesting schedules, with no movement detected during the crash. The team’s wallet addresses are transparent and show no signs of compromise.
- Unlike high-profile hacks (e.g., the $1.4 billion Bybit incident in 2025), no security breach alerts or irregular transaction patterns have been flagged by on-chain investigators like ZachXBT or Wu Blockchain.
- Alternative Explanations:
- Forced Liquidations: Mantra’s official narrative attributes the crash to “reckless forced closures” by centralized exchanges (CEXs). Mullin claimed that an unnamed exchange initiated sudden account position closures without warning, triggering a cascade of liquidations during a low-liquidity period.
- Pre-Crash Token Movements: On-chain data shows significant OM token deposits to exchanges in the days leading up to the crash:
- Lookonchain reported 17 wallets depositing 43.6 million OM ($227 million, 4.5% of circulating supply) to exchanges starting April 7. Two wallets were linked to Laser Digital, a strategic investor.
- SpotOnChain noted a group of whales moving 14.27 million OM ($91 million) to OKX three days prior, with these whales holding 69.08 million OM now valued at $62.2 million post-crash.
- A wallet possibly associated with the team deposited 3.9 million OM to OKX, raising suspicions, though no direct link to the Founders Wallet was confirmed.
- These movements suggest coordinated selling or hedging rather than a hack, though the exact intent remains unclear.
- Community Allegations:
- Critics on X and Reddit have pointed to Mantra’s control of nearly 90% of the token supply as a red flag, arguing it enables price manipulation. However, no evidence confirms the Founders Wallet itself was compromised.
- Claims of a Telegram channel shutdown were debunked by Mullin, who clarified that a spam-detection bot temporarily restricted access, not a deliberate closure.
Official Response and Exchange Involvement
- Mantra’s Stance: The team denies any rug pull or insider selling, emphasizing that OM’s tokenomics remain intact and team tokens are locked. They are investigating the role of CEXs and have called for better oversight of exchange practices.
- Exchange Reactions:
- OKX: CEO Star Xu labeled the collapse a “big scandal” and promised a full report on on-chain data, including deposits and liquidations. OKX confirmed no internal security breaches but noted public data availability for scrutiny.
- Binance: Implemented risk controls on OM since October 2024, reducing leverage on trading pairs. Binance distanced itself from direct responsibility, suggesting insider activity as a possible cause.
- No exchange has confirmed a hack or security failure related to Mantra’s wallets.
Analysis and Implications
The absence of concrete evidence supporting a Founders Wallet hack points to other factors driving the collapse:
- Market Dynamics: The rapid sell-off, amplified by forced liquidations, suggests a liquidity crunch exacerbated by large pre-crash deposits. The concentration of OM tokens among a few holders (30% held by the top 10 wallets) increases vulnerability to sharp price swings.
- Trust Erosion: Allegations of insider dumping and past controversies (e.g., a lawsuit from RioDeFi shareholders and false FTX investment claims) have fueled skepticism, damaging investor confidence.
- RWA Sector Impact: The crash raises questions about the stability of RWA tokenization projects. Incidents like this could deter institutional adoption unless transparency and risk management improve.
While a hack is unlikely based on current data, the significant token movements prior to the crash warrant further investigation. The Mantra team’s control over a large portion of the supply remains a point of contention, highlighting systemic risks in centralized token governance.
Conclusion
As of April 14, 2025, no credible evidence supports the rumor that the Mantra Founders Wallet was hacked. Instead, the collapse appears tied to a combination of forced liquidations by exchanges and large-scale token deposits, possibly by strategic investors or whales, triggering panic selling. The Mantra team’s assurances of locked tokens and ongoing investigations are steps toward transparency, but rebuilding trust will require detailed disclosures and accountability.
FinTelegram advises investors to exercise caution with OM and similar high-concentration tokens. The crypto community should monitor upcoming reports from OKX and Mantra for clarity on the crash’s mechanics. This incident underscores the need for robust tokenomics and decentralized governance to mitigate risks in the volatile RWA sector.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. The cryptocurrency market is highly volatile, and investors should conduct their own due diligence.
