#近期热币 Review of the OM Crash Incident #OM

On March 20, some community users monitored that there were large OM account addresses to withdraw coins and transfer them to the trading platform, and there were rumors that OM had completed several over-the-counter transactions with large discounts. Subsequently, a number of large OM investors smashed the market, the currency price continued to fall, OTC buyers were trapped, and the panic in the community spread and began to rush.  
On the morning of April 14, the OM price plummeted from 6.2u to 0.4u, a drop of over 90%, with a market cap evaporation of 5.5 billion dollars in 2 hours.
On-chain data shows that before the flash crash of OM, tokens accounting for 4.5% of the circulation were deposited into CEX, with strategic investor Laser Digital suspected of participating.
The MANTRA team officially denied the rumors of "running away". They stated that the recent price drop was caused by "improper forced liquidation operations by other (CEX) exchanges during the low liquidity period in the early morning in Asia." The team further pointed out that they are suspicious of the negligence of the exchanges or potential market manipulation. At the same time, the MANTRA team emphasized that the project tokens are still in a locked state, and there has been no selling behavior from the team or core investors.
On-chain data analysis reveals that during the crash, the market was hit by a wave of large liquidation orders, triggering a chain reaction of sell-offs. Due to insufficient market depth, this series of sell-offs further exacerbated the downward trend in prices.
In summary, in the face of drastic market fluctuations, project teams, centralized exchanges (CEX), and market makers are eager to distance themselves from responsibility. In contrast, retail investors often find themselves at a natural disadvantage due to limited access to information. For projects that rely on grand narratives such as "unlock expectations" and "ecological blueprints" to support their high valuations, this bubble-like narrative approach is unlikely to be sustainable in the long term. Ultimately, these narrative bubbles are likely to burst, leading project values to revert to rational levels or even lower.
This wave of plummeting prices serves as a warning for us, which boils down to two points —
1. Stay vigilant about the "FDV myth" and return to fundamental analysis. The true value should be based on protocol revenue and user growth, rather than paper valuations.
2. Don't hold high leverage positions during low liquidity periods; the death will be a bit slower.