Mantra’s OM Token Crash Demands Full Forensic Probe, Says CertiK Executive
Blockchain Analysis Offers Clues, But Only a Deep Dive Can Uncover the Truth Behind the Collapse
April 22, 2025 — As $80 million worth of OM tokens go up in smoke in an effort to restore user confidence, questions still swirl around the sudden crash of Mantra’s OM token earlier this month. Experts warn that the causes behind the dramatic price drop cannot be explained by blockchain analytics alone.
According to Natalie Newson, a senior blockchain investigator at CertiK, only a comprehensive forensic investigation — on the scale of what followed the FTX collapse — could reveal whether the OM crash involved calculated manipulation or was simply a market failure.
“A full forensic investigation would be needed to substantiate claims of calculated exploitation,” Newson told Cointelegraph.
Inside the Crash: Transparency Versus OTC Shadows
Mantra’s $80M Token Burn Sparks Hope — But Not Answers
John Mullin, Mantra’s founder and CEO, initiated an $80 million OM token burn to help restore investor trust. Yet the true causes of the token’s downfall remain unclear.
The Mantra team has publicly asked centralized exchange partners to collaborate in uncovering what went wrong. However, as Newson emphasized, onchain analysis tells only part of the story.
“It’s vital to distinguish between transparent onchain activity and the opaque nature of OTC deals,” she said.
OTC Deals: The Invisible Threads Behind the Market
Mullin acknowledged in an interview with Coffeezilla that Mantra had engaged in “a small amount of OTCs” — up to $30 million worth of OM tokens. These off-exchange transactions are typically used to enable large-volume trades with less price impact, but they also limit public visibility and obfuscate intent.
Newson pointed out that while one whale reportedly accumulated 100 million OM tokens, these were likely acquired through secondary market deals, not necessarily via insider activity.
Blockchain Tools Provide Hints, But Not Hard Proof
Mantra has pushed back against accusations of insider dumping, with Mullin asserting that blockchain intelligence platform Arkham had mislabelled some wallets involved in the crash.
While Arkham and fellow analytics firm Nansen offer insights into wallet behavior and flow, Newson cautioned that they cannot confirm insider coordination without access to centralized exchange records and offchain agreements.
“Blockchain tools can provide directional clues, but drawing definitive conclusions would be difficult without deeper access,” she noted.
Community Still Waiting on Forensic Audit
While Mullin has suggested that the team is considering a forensic audit, no decision has been made as of April 16. In the meantime, the crypto community remains wary, with some analysts calling the OM incident a wake-up call for liquidity risks and transparency gaps in the crypto ecosystem.
“There are ways to get data from the node, but it’s not easy to get a full history,” added Whale Alert co-founder Frank Weert.
To date, Arkham has not responded to media requests regarding the incident.
Conclusion: A Story Still Unfolding
As the dust settles on Mantra’s OM crash, calls for accountability and transparency are growing louder. But until a full forensic audit is conducted — one that goes beyond blockchain to examine internal communications, agreements, and exchange data — the truth behind the token’s downfall will remain part speculation, part mystery.
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