The CEO of a real-world asset (RWA)-focused crypto challenge is alleging that centralized exchanges might have performed a job within the sudden collapse of the challenge’s native token.
The market cap for prime RWA challenge MANTRA (OM) plummeted by $5.431 billion on Sunday – declining from over $6.11 billion to $683.3 million in a matter of hours.
Mantra CEO JP Mullin alleges on the social media platform X that the crash was brought on by unnamed exchanges seemingly working towards the coin by needlessly closing giant positions throughout low-liquidity hours.
“We have now decided that the OM market actions had been triggered by reckless pressured closures initiated by centralized exchanges on OM account holders. The timing and depth of the crash recommend {that a} very sudden closure of account positions was initiated with out adequate warning or discover. That this occurred throughout low-liquidity hours on a Sunday night UTC (early morning Asia time) factors to a level of negligence at finest or probably intentional market positioning taken by centralized exchanges.
Centralized trade companions play an vital function in offering liquidity to tasks like ours. We work carefully with them, nevertheless, they proceed to train enormously excessive ranges of discretion. When discretionary powers are exercised with out due inside and exterior oversight, dislocations like what just lately occurred can and can happen, hurting each tasks and traders alike.”
He additionally claims that the Mantra workforce didn’t take any actions that might have contributed to OM’s collapse
Mullins doesn’t title the crypto exchanges he alleges triggered the lack of worth, however he does rule out Binance.
“It was positively NOT Binance.”
At time of writing, OM is buying and selling at $0.51, down 91.2% within the final 24 hours alone.
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