Binance Links OM Token Volatility to Across-Platform Liquidations and Introduces Risk Management Strategies

Cryptocurrency exchange Binance In a statement posted on the social media platform X, Binance acknowledged the recent price dynamics concerning OM, which is the native token of the Layer 1 blockchain known as MANTRA.

Following a thorough preliminary analysis, the platform attributes the observed volatility to cross-exchange liquidations. Since the previous October, Binance has been implementing various strategies to manage risks linked to the OM token, which includes alterations to leverage levels, with the purpose of curbing market fluctuations.

Additionally, starting in January, Binance began showcasing a pop-up notification on the trading page for OM, informing users of significant changes in supply and overall tokenomic conditions. The exchange has reiterated its commitment to continually monitor market trends and confirmed that it will persist in deploying necessary safety measures to protect its users and maintain platform integrity.

OM The OM token experienced a drastic plunge over the weekend, with a drop exceeding 90% in just a few hours, raising alarms among investors who sought to understand the underlying reasons.

In a follow-up announcement, the MANTRA team clarified that the situation wasn't caused by any internal project problems but was principally a result of what they termed as reckless liquidations, which were not instigated by their team.

John Patrick Mullin, the co-founder of the project, shared on social media that this drastic fall seemed to result from a forced liquidation initiated by a major OM holder on a centralized exchange (CEX). He added that the team is currently investigating the incident and is working towards a resolution.

The steep decline suggests that a significant position was liquidated without appropriate warning, which had an immediate impact on the market. The MANTRA team stressed that while they have robust partnerships with various centralized exchanges, these platforms ultimately have the freedom to decide how to handle such situations. They indicated that exercising this freedom, particularly when lacking oversight, can lead to severe disruptions in the market, affecting both the project and its wider community.

MANTRA The team reassured that this incident did not involve any token sales orchestrated by the project team itself, the MANTRA Chain Association, its advisors, or early investors. All associated token distributions are securely locked and governed by openly accessible vesting schedules, with wallet addresses made available for public verification.

Massive OM Token Transfers Fuel Speculations Ahead of Price Collapse: $227 Million Shifted By 17 Wallets

Prior to the abrupt drop in OM's market value, blockchain records indicate that 17 wallets transferred about 43.6 million OM tokens—amounting to around $227 million—across various exchanges. This transfer constituted around 4.5% of the token’s circulating supply at that time, sparking inquiries within the community about possible links to the ensuing volatility. Notably, two wallets involved in these transactions have been identified as connected to Laser Digital, a recognized strategic investor.

Commenting on the unfolding events, the CEO of the OKX exchange remarked that this incident reflects broader issues within the cryptocurrency ecosystem. He pointed out that all token unlock events and on-chain transactions are recorded and can be publicly reviewed, ensuring transparency regarding collateral and liquidation data across major exchanges. OKX also pledged to release a complete set of relevant reports to offer clarity and assist the community in understanding the events that led up to the price crash.