The current collapse of the Mantra (OM) token triggered contrasts to the notorious Terra community crash in Might 2022, with some analysts describing Mantra as the “next Terra.” Still, numerous in the neighborhood argue that the 2 jobs share absolutely nothing in typical besides visual resemblances in rate charts.
” While it’s appealing to draw parallels in between OM’s current crash and the Terra Luna collapse, they’re basically extremely various occasions,” stated Ben Yorke, vice president of community at the decentralized financing (DeFi) task Woo, in a declaration to Cointelegraph.
Alexis Sirkia, chairman of the DeFi facilities task Yellow Network, concurred. “There are no genuine resemblances apart from the visual of the rate dropping,” he stated.
Visual resemblance– various numbers
Mantra’s OM token dropped 92% on April 13, dropping from over $6 to around $0.52 within hours. According to information from CoinGecko, OM lost $5.4 billion in market capitalization in less than 4 hours.
By contrast, TerraClassicUSD (previously UST) took 5 days to lose a comparable portion, shedding $17.2 billion.
Mantra’s OM crash in April 2025 versus USTC (previously UST) crash in Might 2022 (seven-day chart). Source: CoinGecko
The LUNA crash was more steady than both the OM token and USTC. It began plunging a long time before the UST token depegged on Might 9, 2022.
Still, the visual similarity of the rate charts has actually triggered contrasts amongst observers, in spite of substantial structural distinctions in between the jobs.
Terra collapse was systemic in contrast to Mantra
Woo’s Yorke and Yellow Network’s Sirkia concurred that Terra’s collapse was systemic and took place due to the failure of its algorithmic stablecoin, while Mantra was not shown to be based on any systemic defects.
” OM seems more of a case of mismanagement or carelessness,” Yorke stated, including that the Mantra crash included a “a great deal of insider-held tokens” transferred to exchanges, which triggered cascading liquidations.
Source: ZachXBT
” The problem wasn’t a structural defect in the procedure, however rather a breakdown in token handling and trust,” he kept in mind.
Related: Mantra CEO states OM token healing ‘main issue’ however in early phases
” Mantra is not broken. There was no peg to stop working. This is a market structure problem, not a procedure failure,” Sirkia mentioned, worrying that just an occasion like a clever agreement failure might show a major problem in the procedure. He included:
” Terra collapsed since of how it was developed. Mantra went through a market-driven correction. The group stayed transparent throughout. After the drop, OM bounced over 200%, revealing genuine need and neighborhood belief. That type of healing never ever occurred with Luna.”
Yorke and Sirkia’s Mantra remarks mark the 2nd day after the OM crash, with the token somewhat recuperating to $0.80 by releasing time after a ruthless sell-off from above $6 to $0.50 per token on April 13.
According to the current upgrade by Mantra CEO John Mullin, Mantra anticipates to share a post-mortem report detailing the occasions resulting in the crash of the OM token in the next 24 hr.
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