The recent collapse of the OM token, developed by the decentralized finance platform mantra (DEFI), has highlighted a crucial question for the entire cryptocurrency ecosystem: the system financial lever Policies adopted by exchanges.
In an update published on April 30, Mantra stressed how the incident was not an isolated event, but rather a symptom of a systemic problem that could affect any project in the sector.
Mantra CEO, John Mullinsaid that Cascade liquidations Place a real threat to market stability, especially when fueled by excessively aggressive lever positions.
According to Mullin, it is time for the sector to meet to examine current policies and protect investors against avoidable risks.
The causes of the collapse of the Mantra OM token: not just internal responsibility
Mantra clarified that the collapse of the OM token was caused by a dynamic that goes beyond the unique platform. In particular, he pointed his finger on the lever effect trading Practices adopted by numerous centralized exchanges.
According to society, these policies amplify volatility and can trigger chain reactions which even overwhelm the strongest projects.
In her declaration, Mantra called on the entire cryptography sector to collaborate to define more responsible Risk management policies::
“”We collaborate with the main exchanges to improve market stability and we ask the rest of our sector to provide comments on how exchange policies can minimize or continue to authorize policies that create risks for investors. »»
In response to collapse, Mantra has announced a series of initiatives to strengthen its infrastructure and improve user confidence.
Mantra has indeed decided to accelerate the decentralization process of its network. At the end of the second quarter of 2025, the company provides for Half the number of internal validators and integrate 50 Validators of external partners.
This movement aims to reduce the concentration of validation power and make the network more resilient to potential attacks or dysfunctions.
Another concrete action was the Burning of 150 million tokens OM Previously in the clears. This operation continuously reduced the total offer of the token, helping to stabilize its value and strengthen investor confidence.
To improve transparency, Mantra has introduced a Real -time dashboard This provides updated data on the project tokenomics. In addition, he initiated the Alpha test of a new Ethereum virtual machine test testcalled Omstead.
This new infrastructure aims to improve the technical resilience of the network and to offer a more stable environment for the development of decentralized applications.
The silence of exchanges: a collaboration which is slow to arrive
Despite the collapse of the prices, the mantra chain continued to operate without interruptions, even recording Transaction volumes at peaks at all times. An important signal of the technical solidity of the project, even under extreme market conditions.
Despite the Mantra public calls, the response of cryptocurrency exchanges has so far been disappointing.
Especially, OkxOne of the main players in the sector has refused to comment On the situation or to discuss a possible political collaboration to respond to the risks associated with the lever effect.
However, the CEO of OKX, Star Xuwas among the first to recognize the severity of the incident, describing OM's collapse “Great scandal for the entire cryptography sector». An admission which, however, has not yet been followed by concrete actions.
The OM case represents an alarm clock for the entire cryptocurrency ecosystem. On the one hand, he highlighted vulnerabilities linked to excessive speculative practices, while on the other hand, he offered the Mantra the possibility of demonstrating his ability to react and adapt.
With targeted interventions on governance, transparency and technical infrastructure, Mantra tries to transform a crisis into an opportunity for growth.
However, without a collective commitment Exchanges and other players in the sector, the risk of a new systemic bull remains high.
The future of the cryptography sector will depend on the ability to learn from episodes like this and build a safer, more transparent and lasting environment for all investors.
