The current collapse of the Mantra (OM) token triggered comparisons to the notorious Terra ecosystem crash in Might 2022, with some commentators referring to Mantra because the “subsequent Terra.” Nonetheless, many locally argue that the 2 tasks share nothing in widespread moreover visible similarities in value charts.
“Whereas it’s tempting to attract parallels between OM’s current crash and the Terra Luna collapse, they’re basically very totally different occasions,” mentioned Ben Yorke, vp of ecosystem on the decentralized finance (DeFi) mission Woo, in a press release to Cointelegraph.
Alexis Sirkia, chairman of the DeFi infrastructure mission Yellow Community, agreed. “There are not any actual similarities other than the visible of the value dropping,” he mentioned.
Visible similarity — totally different numbers
Mantra’s OM token dropped 92% on April 13, dropping from over $6 to round $0.52 inside hours. Based on information from CoinGecko, OM misplaced $5.4 billion in market capitalization in lower than 4 hours.
In contrast, TerraClassicUSD (previously UST) took 5 days to lose an identical proportion, shedding $17.2 billion.
Mantra’s OM crash in April 2025 versus USTC (previously UST) crash in Might 2022 (seven-day chart). Supply: CoinGecko
The LUNA crash was extra gradual than each the OM token and USTC. It began plummeting a while earlier than the UST token depegged on Might 9, 2022.
Nonetheless, the visible resemblance of the value charts has prompted comparisons amongst observers, regardless of important structural variations between the tasks.
Terra collapse was systemic in distinction to Mantra
Woo’s Yorke and Yellow Community’s Sirkia agreed that Terra’s collapse was systemic and occurred as a result of failure of its algorithmic stablecoin, whereas Mantra was not confirmed to be topic to any systemic flaws.
“OM seems to be extra of a case of mismanagement or negligence,” Yorke mentioned, including that the Mantra crash concerned a “massive variety of insider-held tokens” moved to exchanges, which sparked cascading liquidations.
Supply: ZachXBT
“The difficulty wasn’t a structural flaw within the protocol, however fairly a breakdown in token dealing with and belief,” he famous.
Associated: Mantra CEO says OM token restoration ‘major concern’ however in early phases
“Mantra isn’t damaged. There was no peg to fail. This can be a market construction subject, not a protocol failure,” Sirkia acknowledged, stressing that solely an occasion like a wise contract failure might point out a critical subject within the protocol. He added:
“Terra collapsed due to the way it was constructed. Mantra went by way of a market-driven correction. The crew remained clear all through. After the drop, OM bounced over 200%, exhibiting actual demand and neighborhood perception. That sort of restoration by no means occurred with Luna.”
Yorke and Sirkia’s Mantra feedback mark the second day after the OM crash, with the token barely recovering to $0.80 by publishing time after a brutal sell-off from above $6 to $0.50 per token on April 13.
In accordance to the most recent replace by Mantra CEO John Mullin, Mantra expects to share a autopsy report detailing the occasions resulting in the crash of the OM token within the subsequent 24 hours.
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