Cryptocurrency OM project Mantra — everything you need to know

MANTRA (OM) is an innovative blockchain project aimed at integrating traditional financial markets with decentralized technologies. The main purpose of MANTRA Chain is to simplify and enhance the efficiency of coinization of real assets (Real World Assets, RWAs).

Unfortunately for developers, in April 2025, Mantra was discussed not because the project became successful. The reason for the discussions was the fall of its cryptocurrency OM by more than 90%. We explain what Mantra is and why its coin was so unfortunate.

In this article:* What is MANTRA (OM)

• Advantages of MANTRA Chain
• Cryptocurrency OM

• Staking OM

• Incident of sharp decline in the OM rate

• Consequences of the OM crash
• Will Mantra survive

What is MANTRA (OM)

MANTRA Chain is a specialized Layer-1 blockchain network designed for interaction with tokenized real-world assets in compliance with regulatory norms.

Screenshot of the project siteHere are the main components of MANTRA Chain

1. MANTRA DID (Digital Identity). Creates a digital identification in the form of a Soulbound NFT based on the KYC procedure.

2. MANTRA Guard. A compliance module that works in conjunction with DID to manage access to various services and assets of the network.

3. MANTRA Token Service (MTS). Allows creating and managing tokenized assets with control functions and compliance with jurisdictional requirements.

4. MANTRA DEX. A decentralized exchange with a liquidity pool based on the AMM protocol (Automated Market Maker), providing seamless exchanges.

5. MANTRA LEEP (Liquidity Efficient Emissions Protocol). A protocol designed to address the issue of low liquidity of tokenized real assets.

Advantages of MANTRA Chain

• The ability to build multi-chain dApps based on CosmWasm.
• Token compatibility with the inter-blockchain protocol IBC.
• Fast transactions between leading Layer 1 networks (L1).

Cryptocurrency OM

OM was originally launched in 2020 as an ERC-20 coin with a fixed supply. However, starting from October 2024, OM became the native coin for staking and gas in the MANTRA Chain ecosystem.

Initially, it was planned to use two separate tokens (ERC-20 OM and token AUM) for different purposes in the ecosystem, however, in February 2024, the community decided to transition to a single OM token. A migration of ERC-20 tokens to the proprietary blockchain network MANTRA Chain was required through the "Mirror Bucket" mechanism.

With the transition to MANTRA Chain, the OM coinomics have been changed:

• Transition from a fixed issuance to an inflation model of (3% per year).
• Increase in total supply from 888 888 888 to 1 777 777 777 coins OM.
• Introduction of the Mirror Bucket mechanism for the secure transfer of ERC-20 coins to the MANTRA Chain blockchain through the burning of ERC-20 OM and the issuance of an equivalent amount of OM on the main network.

Here is what the distribution of coins looks like:

• 2.8% for airdrops.
• 67.5% for upgrading OM from Ethereum to mainnet.
• 12.8% MANTRA Chain Association (ecosystem and investors).
• 16.9% to the main participants of the team.

Staking OM

Staking OM allows users to actively participate in securing the network by receiving rewards in the form of additional coins in return. To participate, you need to delegate OM to network validators. The current annual yield of (APR) is about 5.73%.

Thus, MANTRA (OM) is a comprehensive solution for integrating traditional assets into the blockchain environment, however, the incident with the drop in price highlighted the importance of transparency and investor trust in the project.

Incident of Sharp Decline in OM Price

On April 13, 2025, the token MANTRA (OM) experienced a sharp decline, losing over 90% of its value in less than an hour. The price OM plummeted from $6.13 to $0.45, causing mass liquidations of positions and panic selling among investors. The market capitalization of the project decreased from $5.9 billion to $463 million.

OM Chart. Source: TradingViewThe developers of MANTRA stated that the decline was caused by forced liquidations on centralized exchanges, not by actions of the project team. However, participants in the crypto community pointed out suspicious transactions and transfers of large volumes of OM to exchanges. Investors indicated possible involvement of the project team and strategic investor, the Swiss bank Nomura, in market manipulation.

Against the backdrop of the crisis, the official Telegram channel of MANTRA was blocked, which increased investor dissatisfaction. As a result, the RSI (relative strength index) of OM fell to historically low levels, indicating a complete lack of buyers and the dominance of bearish sentiment.

Consequences of the OM collapse

The collapse of OM has caused a wave of dissatisfaction among investors, some of whom have lost significant amounts. There have been threats of legal action against the MANTRA team. There are also accusations of insufficient transparency of the project, changes in the coinomics, and delays with airdrops.

Previously, in 2021, the project faced criticism for possible fraudulent activities, which increases distrust towards the team and the project as a whole.

Will Mantra survive

The MANTRA team asserts that the project maintains fundamental sustainability and continues to work on the development of the ecosystem. However, restoring investor confidence will take time and transparent actions from the team.

The future of OM will depend on the team's ability to respond effectively to crises, ensure transparency, and restore the community's trust.

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