Mantra (OM) Crumbles Amidst Fermentation! Reef Finance Founder Entangled in Manipulation Allegations, Offloading Over One Hundred Million Dollars?

04/15/2025

Token Crash Shocks Market: OM Loses Nearly 90% of Its Value in One Day

Yesterday, the native token OM of the RWA project Mantra plummeted by nearly 90% within a few hours, resulting in a market cap evaporation of over $5.5 billion, shocking the cryptocurrency market. On-chain investigator ZachXBT revealed that Denko Mancheski, the founder of Reef Finance, allegedly sought a large loan shortly before the crash, raising suspicions of market manipulation due to his controversial past.

OM Token Price Plummets: 90% Loss in Market Value in One Day

Yesterday morning, the price of OM token dropped from approximately $7 to $0.86, with a single-day decline of 87.7%. The official statement from Mantra claimed that a large investor executed a “reckless liquidation” during a period of low liquidity, triggering an avalanche of sell pressure. This flash crash caused OM’s market cap to evaporate by over $5.5 billion.

(Reviewing the RWA project Mantra’s short-term drop of over 90%, igniting the fuse that led to a market cap evaporation of $5.5 billion)

In response, the community questioned Mantra’s risk control capabilities, with some users suspecting that there might be insider trading and market manipulation behind the incident.

Reef CEO in the Spotlight: Another Scandal Erupts

ZachXBT’s Revelations: Large Loans Trigger Trust Crisis

ZachXBT alleged on the X platform yesterday that Reef founder Denko Mancheski and the account “@Fukogoryushu” sought large loans collateralized by OM tokens from multiple market entities just days before the OM crash. Market maker Vortex confirmed this information, which is viewed as potentially indicative of market manipulation.

Specifically, while collateralized loans themselves are not problematic, “the motivation, timing, and scale when paired with specific events (such as a crash) raise suspicions that this is a designed ‘script’,” particularly when the individuals involved are controversial figures, making doubts even more pronounced.

Reef’s Troubled History Revisited: Not the First Time Entangled in Market Manipulation Allegations

It is reported that Reef Finance has a number of controversies surrounding it:

In 2021, it faced criticism for lack of transparency during an $80 million over-the-counter deal with Alameda Research.
In August 2024, Binance delisted the Reef token, leading to a single-day price drop of 64%.

These past records make Denko’s actions in the current incident particularly sensitive, triggering distrust within the community.

Lookonchain: Massive Token Transfers Trigger Panic

At the same time, Lookonchain indicated that before the crash, 17 wallets transferred approximately 43.6 million OM tokens (worth about $22.7 million at the time) to exchanges, accounting for 4.5% of the circulating supply.

Who dropped the price of $OM? Before the $OM crash (since April 7), at least 17 wallets deposited 43.6M $OM ($227M at the time) into exchanges, 4.5% of the circulating supply. According to Arkham’s tag, 2 of these addresses are linked to Laser Digital.

Even though there is currently no evidence linking Denko to these addresses, these transactions are viewed as the catalyst that ignited panic.

Mantra and Laser Digital Refute Claims

In response, Mantra CEO John Patrick Mullin denied that insider selling of tokens was the cause, attributing it instead to structural market issues such as insufficient liquidity. He also pointed out that some on-chain data, such as Arkham’s tagging, contained errors. Mantra’s strategic investor Laser Digital also clarified that they did not participate in any sell-off, and their holdings remain locked.

Legal Investigation Initiated, Mantra In Trouble

Shortly after the incident, Burwick Law, a law firm that previously assisted in addressing investor losses in the Pump.fun and Argentine presidential token LIBRA incidents, announced an investigation into Mantra, urging affected parties to report their losses.

MANTRA?$OM? Burwick Law is investigating MANTRA & its OM token following a reported 90% price drop. Our review covers tokenomics, large-scale transfers, and liquidity concerns. If you lost money, realized or unrealized, see below. Attorney advertising. Results may vary.

Is OM’s Plummet a Manipulation Conspiracy or a Market Storm? Still to Be Clarified

The truth behind the flash crash of OM token remains unclear. While there is currently a lack of definitive evidence proving whether Denko manipulated the market, his controversial past undoubtedly heightens market vigilance regarding his actions, and investors’ trust in Mantra may have already been shattered.

Meanwhile, OM’s drastic decline also highlights the high risks posed by insufficient liquidity and information asymmetry in the cryptocurrency market. Investors should enhance their understanding of project teams’ backgrounds and on-chain data to avoid making irrational decisions in market panic.

Risk Warning

Investing in cryptocurrencies carries high risks, and their prices may fluctuate significantly; you may lose your entire principal. Please assess the risks cautiously.