On April 14, the MANTRA project officially posted on the X (Twitter) platform that the main reason for the strong volatility of the OM token originated from a centralized exchange (CEX) forcibly closing user accounts. MANTRA said that accounts holding OM tokens were suddenly closed without any prior warning or notification.

As Allinstation has reported, in the early morning of April 14, the token price of the Real World Assets (RWA) project MANTRA unexpectedly plummeted, dropping from $6.3 to only $0.48, equivalent to a drop of more than 12 times in just a few hours. This severe price collapse caused a widespread liquidation wave, especially for long positions.

Also Read: Mantra (OM) Price Suddenly Drops More Than 12 Times in a Short Time, What's Happening?

According to the project, the price volatility occurred on Sunday night (early morning in Vietnam time) - when market liquidity was low, indicating carelessness in operations or even deliberate market manipulation by the exchange. This raises concerns about the level of control and supervision of CEXs in handling user accounts, especially when they still play a crucial role in providing liquidity for projects.

MANTRA emphasizes that this chaos was not caused by the development team, MANTRA Chain Association, core advisors, or MANTRA investors selling tokens. All tokens remain locked and comply with the previously announced vesting schedule. The economic mechanism of the OM token remains unchanged.

Additionally, MANTRA warns users not to access fake links or interact with impersonating accounts to avoid fraud during this period of strong market volatility.