Binance Attributes OM Token Volatility To Cross-Exchange Liquidations, Implements Risk Controls Measures
In Brief
Binance has primarily attributed the volatility of OM to cross-exchange liquidations and noted that it had previously implemented risk mitigation measures related to the token, including adjustments to leverage levels.
Cryptocurrency exchange Binance issued a statement on the social media platform X, noting that it is aware of recent price fluctuations involving OM, the native token of the Layer 1 blockchain MANTRA.
The platform attributed this volatility primarily to cross-exchange liquidations, based on its preliminary analysis. Since October of the previous year, Binance has introduced several risk mitigation strategies concerning the OM token, including adjustments to leverage levels, in an effort to better manage market instability.
Additionally, starting January, the platform began displaying a pop-up notification on OM’s spot trading page to alert users about considerable changes to the token’s supply and broader tokenomics. Binance emphasized its ongoing commitment to monitoring market conditions and affirmed that it will continue to implement necessary measures to safeguard its users and uphold the platform’s stability.
OM experienced a sharp and sudden price drop on Sunday, plunging over 90% within a few hours and prompting concern among investors seeking clarity on the situation.
In a follow-up statement, the MANTRA team clarified that the incident was not due to any internal project-related issues, but rather the result of what they described as reckless liquidations unrelated to their team’s actions.
The project’s co-founder, John Patrick Mullin, noted on social media that the drop appeared to stem from a forced liquidation by a large OM holder on a centralized exchange (CEX), adding that the team is actively investigating the event and working on a resolution.
The nature of the fast decline points to a large-scale position being closed without adequate advance notice, which contributed to the market impact. MANTRA emphasized that while it maintains strong relationships with centralized exchange partners, these platforms retain discretion in how they manage such events. The team cautioned that when such discretion is exercised without oversight, severe market disruptions like this can occur—affecting both the project and its broader community.
MANTRA reaffirmed that the incident did not involve token sales by the project team, the MANTRA Chain Association, its advisors, or early investors. All related token allocations remain locked and governed by publicly available vesting schedules, and wallet addresses remain accessible for verification.
Large-Scale OM Token Transfers Spark Speculation Ahead Of Price Crash: $227M Moved By 17 Wallets
Before the sharp decline in OM’s price, blockchain data reportedly shows that 17 wallets transferred approximately 43.6 million OM tokens—valued at around $227 million—to various exchanges. This movement represented roughly 4.5% of the token’s total circulating supply at the time, raising questions within the community about potential connections to the subsequent volatility. Notably, two wallets involved in recent activity have been identified as being associated with Laser Digital, a firm recognized as a strategic investor.
Commenting on the situation, the CEO of cryptocurrency exchange OKX referred to the incident as an issue for the broader cryptocurrency ecosystem. He emphasized that all token unlock events and on-chain deposits are publicly accessible, and that key data concerning collateral and liquidations on major exchanges can be analyzed transparently. OKX also committed to publishing a full set of relevant reports to provide clarity and help the community better understand the sequence of events leading up to the price crash.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
