{"id":127219,"date":"2025-04-15T14:19:58","date_gmt":"2025-04-15T14:19:58","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127219"},"modified":"2025-04-15T14:19:58","modified_gmt":"2025-04-15T14:19:58","slug":"mantra-and-terra-luna-nothing-in-common-but-a-token-crash","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127219","title":{"rendered":"Mantra and Terra Luna: Nothing in common but a token crash"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe recent collapse of the Mantra (OM) token triggered comparisons to the infamous Terra ecosystem crash in May 2022, with some commentators referring to Mantra as the \u201cnext Terra.\u201d Still, many in the community argue that the two projects share nothing in common besides visual similarities in price charts.<br \/>\n\u201cWhile it\u2019s tempting to draw parallels between OM\u2019s recent crash and the Terra Luna collapse, they\u2019re fundamentally very different events,\u201d said Ben Yorke, vice president of ecosystem at the decentralized finance (DeFi) project Woo, in a statement to Cointelegraph.<br \/>\nAlexis Sirkia, chairman of the DeFi infrastructure project Yellow Network, agreed. \u201cThere are no real similarities apart from the visual of the price dropping,\u201d he said.<br \/>\nVisual similarity \u2014 different numbers<br \/>\nMantra\u2019s OM token dropped 92% on April 13, dropping from over $6 to around $0.52 within hours. According to data from CoinGecko, OM lost $5.4 billion in market capitalization in less than four hours.By contrast, TerraClassicUSD (formerly UST) took five days to lose a similar percentage, shedding $17.2 billion.<br \/>\nMantra\u2019s OM crash in April 2025 versus USTC (formerly UST) crash in May 2022 (seven-day chart). Source: CoinGeckoThe LUNA crash was more gradual than both the OM token and USTC. It started plummeting some time before the UST token depegged on May 9, 2022.<br \/>\nStill, the visual resemblance of the price charts has prompted comparisons among observers, despite significant structural differences between the projects.<br \/>\nTerra collapse was systemic in contrast to Mantra<br \/>\nWoo\u2019s Yorke and Yellow Network\u2019s Sirkia agreed that Terra\u2019s collapse was systemic and occurred due to the failure of its algorithmic stablecoin, while Mantra was not proven to be subject to any systemic flaws.<br \/>\n\u201cOM appears to be more of a case of mismanagement or negligence,\u201d Yorke said, adding that the Mantra crash involved a \u201clarge number of insider-held tokens\u201d moved to exchanges, which sparked cascading liquidations.<br \/>\nSource: ZachXBT\u201cThe issue wasn\u2019t a structural flaw in the protocol, but rather a breakdown in token handling and trust,\u201d he noted.<br \/>\nRelated: Mantra CEO says OM token recovery \u2018primary concern\u2019 but in early stages<br \/>\n\u201cMantra is not broken. There was no peg to fail. This is a market structure issue, not a protocol failure,\u201d Sirkia stated, stressing that only an event like a smart contract failure could indicate a serious issue in the protocol. He added:<br \/>\n\u201cTerra collapsed because of how it was built. Mantra went through a market-driven correction. The team remained transparent throughout. After the drop, OM bounced over 200%, showing real demand and community belief. That kind of recovery never happened with Luna.\u201d<br \/>\nYorke and Sirkia\u2019s Mantra comments mark the second day after the OM crash, with the token slightly recovering to $0.80 by publishing time after a brutal sell-off from above $6 to $0.50 per token on April 13.<br \/>\nAccording to the latest update by Mantra CEO John Mullin, Mantra expects to share a post-mortem report detailing the events leading to the crash of the OM token in the next 24 hours.<br \/>\nMagazine: Illegal arcade disguised as \u2026 a fake Bitcoin mine? Soldier scams in China: Asia Express<a href=\"https:\/\/cointelegraph.com\/news\/mantra-om-vs-terra-luna-nothing-common-but-token-crash?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe recent collapse of the Mantra (OM) token triggered comparisons to the infamous Terra ecosystem crash in May 2022, with some commentators referring to Mantra as the \u201cnext&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127219"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127219"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127219\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127219"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}