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Here’s how crypto traders lost $400M with Mantra (OM) massive price crash

Posted on by Audrey

The Mantra (OM) price meltdown, which caused the market to lose about $6 billion, was caused by cryptocurrency traders and whale-forced liquidity.

The price of Mantra (OM) collapsed, causing traders to suffer severe losses, while the rest of the cryptocurrency market saw a notable recovery. The well-known cryptocurrency plummeted by almost 90% in hours, causing holders to suffer losses. Despite identifying the problems, the collapse continues, resulting in a $400 million loss for a group of investors and several others.

Mantra price crash pushed crypto traders into $400M loss

The Mantra price drop caused investors with enormous losses amid the heightened volatility of the cryptocurrency market brought on by the US-China dispute. Just three days prior to the crisis, a group of 19 new cryptocurrency wallets or traders shifted 14.27M OM, or $91M.

According to Spotonchain X’s article, three days ago, these investors purchased a substantial position of OM tokens from Binance, totaling 84.15 million ($564.7 million). Their remaining 69.08M OM are now worth only $62.2M due to the OM price drop, leaving them with an incredible $406.3M loss.

It’s interesting to note that cryptocurrency specialists believe these investors may have played a role in the meltdown.

Forced liquidation led to Mantra price crash

The cryptocurrency market has lost around $6 billion as a result of the Mantra price collapse. Experts in cryptocurrency, such as StarPlatinum, have likened it to the market-wide LUNA meltdown. According to a thorough investigation by StarPlatinum, the crisis was caused by investors’ fear, the botched Mantra airdrop, and crypto whales.

Crypto analysts

John Patrick Mullin, a co-founder of Mantra, and his colleagues explained that the crash was caused by forced liquidators from OM cryptocurrency investors on controlled exchanges. He made it clear that the team is not responsible for the crash, which is more significant.

To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens. Tokens remain locked and subject to the published vesting periods. OM’s tokenomics remain intact, as shared last week in our latest token report. Our token wallet addresses are online and visible.

Clarity was also provided by a Lookonchain post that disclosed that 17 cryptocurrency dealers contributed 227 million, or approximately 4.5% of the OM’s circulating supply, to the meltdown.

With a market valuation of $761.45 million, the price of the OM token is still down at $0.8 as of this writing. In anticipation of a turnaround, investors are closely watching the experts’ mantra predictions.

Pi coin sees double-digit rise after Chainlink integration

Real-time price data access is now possible thanks to Chainlink’s (LINK), a prominent decentralized oracle network, integration of Pi Network into its Data Streams ecosystem.

For the network, this development represents a major turning point. Notably, following the integration, Pi Coin (PI), its native coin, had a favorable increase.

Chainlink integrates Pi network, price surges

PI was added to 22 additional assets, including JasmyCoin (JASMY), Grass (GRASS), THORChain (RUNE), and others, according to the news, which was posted on Chainlink’s official X (previously Twitter) account.

“In just the past week, 22 new assets became supported by Chainlink Data Streams,” the post read.

For comparison, Chainlink Data Streams is a pull-based, low-latency oracle system that provides real-time market data. Off-chain aggregation and on-chain verification are used in this method to provide scalable, dependable, and quick decentralized data access.

Gupta claims that the integration offers a number of benefits. The most important of them is having access to trustworthy, up-to-date market data, which makes it possible for decentralized apps (dApps) to use extremely accurate PI price feeds.

Gupta emphasized improved liquidity and smooth multi-chain interoperability as two other significant advantages for the Pi ecosystem. This integration greatly expands the use of PI tokens by enabling them to function on popular blockchains like Ethereum (ETH) and Avalanche (AVAX).

According to him, this cross-chain capability opens the door for a variety of use cases, including asset tokenization, digital art, commodities, and DeFi trading and lending. The improved infrastructure may establish Pi Network as a reliable basis for latency-sensitive DeFi applications, Gupta added.

“This integration positions PiNetwork as a DeFi powerhouse! Expect: More dApp integrations, increased liquidity, and massive adoption growth. The future of Pi in DeFi starts now!” he claimed.

The Pioneers, who make up Pi Network’s community, generally feel this way. The latest improvements were described by one analyst as “the next phase of PI’s Web3 growth.”

This month, Dev highlighted more significant developments in addition to the Chainlink integration. One crucial step toward widespread acceptance, he said, was the implementation of a worldwide fiat on-ramp. The introduction of an advertising environment through the Pi Browser was equally significant.

This enables consumers to profit from ad interaction and developers to monetise their apps. When taken as a whole, these achievements represent a significant turning point in Pi Network’s development into a fully viable Web3 platform.

The market’s reaction, meantime, has been just as instructive. Data indicates that since the integration news, PI’s price has risen 17.1%. In addition, the coin’s value has increased by 2.1% in the last day.

It was trading at $0.7 at the time of writing.

Pi Network’s progress hasn’t been without its challenges, though. The list of certified firms hasn’t altered in the last two months, according to an analyst’s article on X.

Although there are still obstacles to overcome, Pi Network has a vital chance to increase its usefulness and awareness thanks to Chainlink’s integration. This achievement supports Pioneers’ long-term goal of building a sustainable, human-driven digital economy.

FUSD custodian releases attestation report showing 1:1 backing despite Justin Sun’s $500M fraud claim

Despite Justin Sun, the inventor of Tron, continuing to accuse the company of fraud, First Digital Labs has published a fresh attestation report stating that its FDUSD stablecoin is completely supported.

The report released on April 14 states that First Digital USD’s entire supply of 2.58 billion tokens is equivalent to reserves of similar value, which include around $1.74 billion in U.S. Treasury bills and $603 million held in overnight repurchase agreements. Fixed deposits in several jurisdictions are examples of additional assets.

All FDUSD reserves are kept in bankruptcy-remote accounts and are never combined with business cash, the company has reiterated. It further stated that to date, more than $1 billion worth of FDUSD has been redeemed without any problems.

Justin Sun accused First Digital Trust a few days prior of embezzling around $500 million in client monies. Sun claims that the company tricked the stablecoin’s issuer into sending the money to an unaffiliated party by working with a network of partners, including Aria DMCC, situated in Dubai. He asserts that the funds were transferred via a phony address change and partially placed into an account known as “Glass Door” in Hong Kong.

Sun referred to the plan as a “major international financial fraud,” equating it to a traditional crypto wallet hack, and cited a number of people who were allegedly engaged. In order to provide proof, he also met with Hong Kong officials and presented a webcast. In response to all of the charges, First Digital Trust filed a defamation claim in the High Court of Hong Kong.

The business is requesting retractions and damages in an effort to prevent Sun from making the same allegations again. The dispute prompted the FDUSD to momentarily lose its peg earlier this month, plunging as low as $0.87. The stablecoin has recovered and was trading at $0.99 at the time of writing.

FDUSD, a fiat-backed, regulated stablecoin, is issued by FD121 Limited and managed by First Digital Trust. At the moment, it is accessible on Sui, Solana, BNB Chain, and Ethereum.

First Digital Trust has stated that it would keep releasing frequent attestations and collaborating with outside companies to offer transparency into its reserves while the court battle progresses.

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