What is MANTRA (OM) crypto and what caused the crash?

MANTRA crypto is the native token of MANTRA Chain, a blockchain built to bring real-world assets such as property and funds on-chain under regulatory rules. The token was called OM until 2026. It is widely known for a sudden collapse in April 2025 that wiped out most of its value in a single evening.

What is MANTRA OM crypto?

MANTRA Chain is a proof-of-stake layer 1 blockchain built with the Cosmos SDK. Nansen describes it as EVM-compatible and connected to other Cosmos chains through IBC, with a focus on compliance and tokenization of real-world assets.

The project has leaned on licensing to support that pitch. In February 2025 MANTRA announced that its entity MANTRA Finance FZE had received a virtual asset service provider license from Dubai's Virtual Assets Regulatory Authority (VARA), covering exchange, broker-dealer and investment management services. That announcement was a paid press release, not independent reporting.

What is OM crypto used for?

According to Nansen, the token is used to pay transaction fees, to stake with validators and earn rewards, to vote on governance proposals, and to access some platform features.

In 2026 the token changed form. A governance vote passed with about 90% support to rename OM as MANTRA and split each OM into four MANTRA, raising maximum supply from 2.5 billion to 10 billion units without changing anyone's share. The older Ethereum-based ERC-20 version of OM was retired on January 15, 2026, and the chain upgrade carrying out the split was set for around March 3, 2026. Exchanges converted balances automatically, while people holding the old token in their own wallets had to migrate it themselves.

What caused the MANTRA crypto crash?

On Sunday April 13, 2025, OM fell more than 90% within hours, according to The Block. MANTRA blamed what it called reckless liquidations, and Mullin said the forced selling happened on a major centralized exchange. Investor Laser Digital denied any role.

CEO John Patrick Mullin said the team had not sold any OM during the drop. Decrypt reported that he did acknowledge earlier over-the-counter sales of OM to an unnamed buyer, with part of the money used for buybacks through market makers. Critics argued this kind of activity can give a false picture of demand. The full cause has not been settled publicly.

Did MANTRA burn OM tokens after the crash?

Yes, a burn was announced. Mullin said he would burn his entire 150 million OM team allocation to rebuild trust, after more than 81% of voters in his public poll backed the idea. The Block reported the project was also in talks with partners to raise the total burn to 300 million OM, about 16.5% of the 1.8 billion supply at the time. A burn reduces supply, but it does not reverse losses or explain what happened.

As of October 2026, the chain operates under the MANTRA ticker, and the 2025 crash remains a common case study in liquidity and concentration risk.