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What happened?

A major event caused the price of the altcoin Mantra (OM) to drop by 90% over a weekend. The Mantra team has released a statement explaining the collapse was due to centralized exchanges closing significant OM positions, not insider trading. Despite a partial recovery, the token’s price is still much lower than its pre-crash value.

Who does this affect?

This incident primarily affects traders and investors holding Mantra (OM), as well as anyone considering it for future investment. Centralized exchanges that experienced position closures also play a role in this situation. Additionally, the broader cryptocurrency community is watching closely due to concerns about tokenomics and market behavior.

Why does this matter?

The market impact of this incident highlights the risks associated with certain altcoins, particularly those with centralized control over their token supply. Mantra’s price volatility could influence investor sentiment and affect the perception of risk across the altcoin market. This situation underscores the importance of transparency and governance structures in evaluating cryptocurrency investments, especially following high-profile failures like Terra Luna.

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