Binance Speaks Out After Sudden Price Crash of OM Token, Confirms Warning Users About Risks Since January 2025 and Reducing Leverage Since October 2024.
The OM token of the Mantra project has experienced a sharp price drop, sparking controversy about the causes and responsibilities among stakeholders. According to information from Binance, this phenomenon is the result of cross-exchange liquidations, causing many traders to be forcibly closed and suffer significant losses.
Preventive Measures Before the Crisis
Through the Binance Customer Support account on the X platform, the world's leading exchange confirmed they had taken preventive measures months earlier. Specifically, since October 2024, Binance proactively reduced the leverage for OM, and from January 2025, deployed pop-up warnings on the OM Spot Trading interface.
The warning clearly stated: "OM has undergone significant changes in tokenomics structure, leading to an increase in circulating supply." This is a sign that Binance had anticipated potential risks associated with this token.
After the incident, Binance affirmed that it will continue to closely monitor developments and take appropriate actions to protect users and ensure platform integrity.
Meanwhile, John Patrick Mullin, co-founder of Mantra, publicly attributed responsibility to centralized exchanges (CEX). According to him, the OM market volatility was triggered by "irresponsible forced liquidations from centralized exchanges". He emphasized: "The timing and depth of the crash indicate positions were closed suddenly, without proper warning or notification."
Mullin also strongly denied that the Mantra team was involved in the price movement: "This price shock did not originate from the team, Mantra chain Council, core advisors, or investors dumping tokens. Assets remain locked and comply with the published vesting schedule."
Notably, despite criticizing how the incident unfolded, Mullin still acknowledged Binance's good response during the crisis: "We contacted the Binance team, and they were very cooperative, transparent, and supportive. We appreciate how Binance handled this difficult situation."
Currently, Binance is requesting traders who encountered issues preventing them from closing positions to provide order codes and screenshots to support incident investigation.
