Shorooq Breaks Silence on OM Token Crash: No Involvement in Sell-Off, Affirms Long-Term Support for MANTRA
Following a turbulent 24-hour period that saw MANTRA’s OM token plunge by nearly 90%, Shorooq Partners, one of the project’s primary equity investors, issued an official statement to clarify its stance and dispel market rumors.
In the statement released on April 14 at 3 PM GST, Shorooq emphasized its long-term commitment to MANTRA and firmly denied any involvement—directly or indirectly—in the token’s sudden price collapse.
“Neither Shorooq, its funds, founding partners, nor MANTRA’s management team sold OM tokens in the lead-up to or during this crash,” the firm said.
What Triggered the Crash?
According to Shorooq, the root cause of the incident was a large-scale forced liquidation of leveraged positions using OM tokens as collateral. These liquidations were executed during a period of thin trading activity—late Sunday night Asia time—compounding the downward pressure and triggering a broader panic-driven sell-off that continued into April 14.
Shorooq stressed that no exploit or malicious attack had been identified. Instead, it was a case of cascading liquidations initiated by exchange protocols, not a coordinated or manipulative act.
MANTRA’s Response
MANTRA’s team has acknowledged the issue and is actively investigating the incident. A full post-mortem will be released once internal reviews are complete. Shorooq publicly supported this move, noting that transparency is essential in times of crisis.
“We fully support their commitment to transparency and accountability in the investigation process,” the statement read.
Investor Perspective: Focused on the Long Game
Shorooq reiterated that its involvement with MANTRA extends beyond token speculation, highlighting its position as an equity investor focused on the project’s long-term roadmap.
“Our support for MANTRA has always been grounded in the project’s technology, team, and value proposition,” the firm noted, emphasizing its belief in MANTRA’s mission to bring real-world assets on-chain in a compliant, scalable way.
Addressing the Rumors: No Token Dumping
In response to circulating speculation that investor-led token sales may have triggered the crash, Shorooq categorically denied any such activity.
The firm did acknowledge a minimal test transaction on March 24–25 intended to assess internal systems, but confirmed that the vast majority of its OM holdings remain locked under a vesting schedule.
“Any rumors suggesting Shorooq or other investors were responsible for the sell-off are patently false,” the firm asserted.
What’s Next?
Both Shorooq and MANTRA underlined their shared commitment to transparency, resilience, and building trust within the broader blockchain ecosystem.
“The community deserves clear answers, and we will continue to advocate for them,” Shorooq concluded.
As the dust begins to settle, market participants await MANTRA’s upcoming post-mortem with anticipation, hoping for a clearer view into one of the most dramatic token crashes in recent memory—and what it might mean for decentralized finance moving forward.
