Mantra’s OM token crashes 90% days after unveiling $108M ecosystem fund

Just days after announcing its $108 million Mantra Ecosystem Fund to accelerate adoption of tokenised real-world asset projects – backed by partners like Laser Digital, Shorooq, and DAMAC – Mantra’s OM token has collapsed by over 90%, falling from $6.30 to under $0.50 and wiping out more than $6 billion in market value.

The cause remains unclear, though co-founder John Patrick Mullin attributed the crash to reckless liquidations, not team activity, and denied allegations of a rug pull.

The crash comes despite recent momentum: Dubai-based VC Shorooq led an $11 million funding round into Mantra last year, and the firm signed a $1B tokenisation deal with Dubai-based property behemoth DAMAC, secured a VARA license, and was positioning itself as a key player in real-world asset tokenisation.

Now, that progress is overshadowed by mounting speculation and shaken investor confidence.