Mantra (OM) is collapsing and fermenting! Reef Finance founder is embroiled in manipulation allegations, selling over a hundred million dollars?

Yesterday, the native Token OM of the RWA project Mantra plummeted by nearly 90% within a few hours, with its market capitalization evaporating by over 5.5 billion dollars, shocking the crypto market. On-chain detective ZachXBT revealed that Reef Finance founder Denko Mancheski allegedly sought a large loan before the big dump, and his past controversies have raised suspicions of market manipulation.

Token collapse shocks the crypto market: OM lost 90% of its market capitalization in one day.

Early yesterday morning, the OM token price plunged from about $7 to $0.86, a one-day drop of 87.7%. Mantra's official confession was due to a large investor conducting "reckless liquidation" when liquidity was thin, triggering an avalanche of selling pressure. The flash crash wiped OM's market value off more than $5.5 billion in an instant.

( Reviewing the RWA project Mantra, which experienced a short-term fall of over 90%, igniting a fuse that triggered a market capitalization evaporation of 5.5 billion USD )

In response, the community has raised doubts about the risk control capabilities of the Mantra team, with some users even suspecting that there may be insider information and market manipulation behind the incident.

The star under the spotlight: Reef CEO caught in another scandal

ZachXBT exposes: Large loans trigger a trust crisis

ZachXBT accused Reef founder Denko Mancheski and the account "@Fukogoryushu" on platform X yesterday of seeking large loans backed by OM tokens from multiple parties in the days leading up to the big dump of OM. Market maker Vortex confirmed this news, which is seen as potentially involving market manipulation intentions.

Specifically, there is nothing wrong with collateralized lending itself, but "the motive, timing, and scale, if paired with specific events such as a crash (, would raise suspicions that this is a well-designed 'script'"; especially when the parties involved are controversial figures, it raises even more doubts.

Reef's dark history is brought to light: not the first time involved in market manipulation suspicions.

It is reported that Reef Finance itself has a lot of controversies surrounding it:

In 2021, criticized for a lack of transparency when conducting an $80 million over-the-counter transaction with Alameda Research.

In August 2024, Binance exchange delisted Reef Token, and the coin price fell by 64% in a single day.

These past records make Denko's actions in this event particularly sensitive, causing distrust within the community.

Lookonchain: Massive Token Transfer Triggers Panic

At the same time, Lookonchain shows that 17 wallets transferred approximately 43.6 million OM Tokens to exchanges before the crash, valued at about 227 million USD at that time, accounting for 4.5% of the circulating supply.

Who dropped the price of $OM?

Before the $OM crash)since Apr 7(, at least 17 wallets deposited 43.6M $OM)$227M at the time( into exchanges, 4.5% of the circulating supply.

According to Arkham’s tag, 2 of these addresses are linked to Laser Digital.

Laser Digital is a strategic… pic.twitter.com/zB8yAPRPSO

— Lookonchain )@lookonchain( April 14, 2025

Even though there is no evidence proving that Denko is related to these addresses, these transactions are seen as the fuse that ignited the panic.

Mantra and Laser Digital come forward to refute.

In this regard, Mantra CEO John Patrick Mullin denied that insiders were selling tokens, attributing it instead to market structural issues such as insufficient liquidity. He also pointed out that some on-chain data, such as Arkham's labeling, contains errors. Mantra's strategic investor Laser Digital also clarified that it has not participated in any sell-off and that its holdings remain in a locked state.

The legal investigation has begun, Mantra and other setbacks.

Shortly after the incident occurred, Burwick Law, a law firm that had previously assisted in handling investor losses related to the Pump.fun and the Argentine presidential token LIBRA events, also announced that it would investigate Mantra and called on affected individuals to report their loss information.

MANTRA? $OM?

Burwick Law is investigating MANTRA & its OM token following a reported 90% price fall.

Our review covers tokenomics, large-scale transfers, and liquidity concerns.

If you lost money, realized or unrealized, see below.

Attorney advertising. Results may vary. pic.twitter.com/eXZxb7nJgL

— Burwick Law )@BurwickLaw( April 13, 2025

Is the big dump of OM a manipulation conspiracy or a market storm? It remains to be clarified.

The truth behind the big dump of the OM Token is still unclear. Although there is currently a lack of concrete evidence to prove whether Denko manipulated the market, its past controversial record undoubtedly raises high alert in the market regarding its behavior, and the trust foundation of investors in Mantra may have already crumbled.

At the same time, the big dump of OM highlights the high risks brought about by insufficient liquidity in the crypto market and information asymmetry. Investors should strengthen their understanding of the project team's background and on-chain data to avoid making irrational decisions in market panic.

This article Mantra )OM( is undergoing a collapse fermentation! The founder of Reef Finance is embroiled in manipulation suspicions, selling off over a hundred million dollars? First appeared in on-chain news ABMedia.