Many investors on social media likened the collapse to the LUNA and FTX crises, calling it a potential rug pull. After a wave of speculation, the Mantra team finally broke its silence.

Mantra Team: “This Was Not Us”

In an official statement, Mantra tried to reassure its community:

“Today’s price action was triggered by reckless liquidations unrelated to the project. We want to be clear: this was not our team. We are investigating and will share more details as soon as possible.”

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Mantra’s CEO also made a statement:

“Guys, I just woke up and I’m trying to figure out what happened. A major OM investor’s position was massively liquidated on an exchange. We’re still sorting out the details, but we’re here and working on solving the issue. Thanks for your understanding.”

Massive Tokenization Projects in the Middle East

Ironically, the OM token crash came shortly after Mantra’s announcement of a $1 billion tokenization deal in January 2025. The agreement with Dubai-based DAMAC included real estate, data centers, and other physical assets to be tokenized on the Mantra blockchain.

Mantra also obtained a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA) in February 2025.

This license allows Mantra to legally operate in the United Arab Emirates, offering crypto exchange, brokerage, management, and consulting services.

Why Did OM Crash?

Mantra co-founder Patrick Mullin said the crash was triggered by the liquidation of a large investor’s position on an undisclosed exchange. However, details such as the exchange’s name, the identity of the investor, or the trade volume have not yet been clarified.

While the team continues to investigate the chain of events, investors are growing concerned about the sustainability of the Mantra ecosystem.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Mantra (OM) Crashes: 90% Value Loss in 24 Hours! appeared first on Coin Engineer.

In an official statement shared with Cointelegraph, Dohrnii Labs revealed that it deposited 12,649.99 Dohrnii (DHN) tokens, valued at over $500,000, with Blynex. On March 23, the company agreed to use 8,650 DHN tokens as collateral for a 30-day loan in exchange for 80,000 USDT. However, Dohrnii claims Blynex never delivered the USDT funds.

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Furthermore, Dohrnii alleges that Blynex liquidated the entire 8,650 DHN collateral on Uniswap, receiving 149,151 USDT. This liquidation reportedly caused a significant decline in the token’s market value. Dohrnii Labs also stated that they were unable to withdraw the remaining 4,000 DHN tokens from the exchange.

Blynex Defends Actions as Automated Risk Management

Mike Baskes, co-founder of Blynex, defended the exchange’s actions, claiming they were part of an “automated risk management system.” Baskes explained that their system detected a high risk of significant collateral devaluation, which triggered an immediate liquidation. He also pointed to the limited liquidity of DHN tokens, which he estimated to be around $315,000 at the time of the sale.

Despite these explanations, Dohrnii Labs argued that Blynex’s justification was misleading, emphasizing that the liquidated collateral was nearly double the loan value.

Legal Action in Progress Against Blynex

In response to the incident, Dohrnii Labs has initiated legal proceedings in the UAE and contacted local regulatory bodies such as VARA and ADGM. The company is also considering joint legal action alongside other affected projects.

Dohrnii Labs disclosed that Blynex later offered a settlement, including 80,000 USDT and the withdrawal of 4,000 DHN tokens, on the condition that all legal actions be dropped. Dohrnii Labs rejected this proposal, stating that user funds are not negotiable and the right to withdraw them should never be contingent upon legal agreements.

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The post Dohrnii Labs Accuses Blynex of Unauthorized Token Liquidation! appeared first on Coin Engineer.