The story is not repeated, but Rhyme is often a famous date of the writer Mark Twain. In the world of cryptocurrencies, it was again painfully clear after the collapse of mantra (si). Following the example of Terra Luna (Luna), Mantra fell and 90% in an hour.
The victims are angry and frustrated by the debacle of the mantra. However, cryptocurrency is currently very popular in Bitvavo. This is the third most negotiated cryptocurrency in the exchange, below Bitcoin (BTC) Y Ethereum (ETH). With a volume of operations more than $ 33 million, even exceeds Ripple (XRP).
Why is OM required in Bitvavo?
Last Sunday, the Mantra fell like an arrow of $ 6.14 to $ 0.45. Some investors may have seen the fall as an opportunity to “buy the fall”. Cryptocurrency increased 27% in the last 24 hours. There was a rebound, while only a few days ago, billions of market values have disappeared.
Exit scam or any other reason after all?
There is still a lot of uncertainty about the fall of the mantra. Some investors have spoken of a Fraud And wrote messages with anger to John Patrick Mullin, co-founder and CEO of the platform. He denies any involvement of the Mantra team.
Forced colonies in cryptocurrency exchanges with little liquidity are the cause of the fall, according to Mullin. With this, it means that the drop in prices is the result of too rare negotiation. In a large Post and ‘x’CEO shares the following, among others:
We have determined that OM prices movements were caused by forced and reckless position closures executed by centralized exchanges in the accounts of OM holders. The time and extent of the collapse suggest that these positions have been closed very suddenly, without notification or sufficient notification. “”
Coingcko data indicate that the fall of the mantra occurred effectively during a low period of liquidity negotiation. Sunday evening, there is generally little negotiation. The price on the part fell to $ 0.47, but since then, it has gave it slightly at $ 0.80. It is still well below the historic maximum of $ 8.99 reached in February.
Doubts about the stability of RWA tokens
Mantra is a decentralized financial platform focused on RWA token and regulation. Since its creation in 2020, the company has experienced rapid growth. Last February, for example, the project obtained the license of the Dubai Virtual Assets Regulatory Authority.
The incident raised doubts about the stability of Tokens of real assets (RWA)Who are digital tokens that represent tangible assets such as real estate, bonds or art in blockchain.
Suspicions have also emerged due to certain actions in the OM blockchain. Some analysts refer to the massive movement of large quantities of OM tokens to exchanges before the sale.
According to the blockchain platform LookonchainAt least 17 portfolios have jointly sent 43.6 million OM to exchanges since April 7. This is equivalent to 4.5% of total traffic.
Investors’ confidence in OM has been greatly affected by the incident. International collaborations are also in danger. Hank Huang, CEO of Kronos Research, told the following at the Decrypt information platform:
Incidents like this test the confidence of investors and raise a crucial question: how to make tokenized assets for wider adoption?
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