HERE ARE SOME FACTS TO CONSIDER
A definitive yes/no answer to whether MANTRA is a scam, based on the events of 2025, is inconclusive without pondering facts.
It's clear that the project has faced significant challenges and controversies that have led some to label it as such.
Public opinion surrounding the April 2025
$OM 90% crash, the allegations of insider manipulation, past issues with MANTRA DAO (2020 scam accusations), and concerns about centralized token supply are significant.
These factors have understandably led a portion of the crypto community to view MANTRA with skepticism and label it as a potential scam or a project with highly questionable practices.
Here's a breakdown of the concerns and MANTRA's responses:
CONCERNS AND ACCUSATIONS
The Sudden +90% Price collapse (April 2025): The most prominent red flag was the dramatic plunge of the OM token's price, from ~6 to ~0.50 in a single day. This kind of rapid, severe drop often triggers "rug pull" or "insider dump" accusations in the crypto space.Allegations of Insider Selling/Manipulation: members of its community (especially after the April crash) accused the "Kabal team" (a term used by some to refer to the MANTRA team or associated parties) of dumping a large portion of the token supply, leading to the crash. There were claims of manipulative practices and control over a significant portion of the token supply.Centralized Control of Supply: Critics pointed out that a large percentage of OM tokens were held in a small number of wallets, often linked to the project team, which raised concerns about potential price manipulation and lack of true decentralization.Lack of Transparency/Communication Issues: During the crash, there were reports of the official MANTRA Telegram group being closed to new users, and existing members struggling to get answers from moderators. This lack of immediate and clear communication fueled suspicion.High Staking Fees : some users reported experiencing extremely high fees when trying to unstake OM tokens, in some cases losing more than they were trying to withdraw.Past Controversies: Reports emerged that MANTRA's predecessor, MANTRA DAO, faced accusations of being a scam in its early days (2020), with concerns about suspicious backgrounds of core team members, identity fraud, and reliance on marketing over actual technology. There was also a lawsuit from RioDeFi alleging misappropriation of assets and unauthorized control of the project.Low TVL vs. Market cap: Before the crash, some noted that MANTRA's Total Value Locked (TVL) was relatively low compared to its high market capitalization, suggesting a disparity between its real-world usage and its speculative valuation.
MEDIATION
The public condemnation of the project prompted the team to come forth and appeal. MANTRA's Responses and Counterarguments include:
CEX Practices: MANTRA attributed the April crash to "reckless forced liquidations" by a CEX (centralized exchange) during a period of low liquidity. They denied insider selling and blamed automated margin calls. Token Burns: within a week after the 90% drop, in an effort to restore confidence and reduce supply, MANTRA announced and executed large token burns (150M OM tokens from the team's allocation).Focus on Real-World Assets (RWA) and Regulatory Compliance: MANTRA continued to emphasize its pivot to a "security-first RWA Layer 1 blockchain" and highlighted strategic partnerships (e.g., with DAMAC in Dubai) and regulatory milestones (e.g., VASP license from VARA in Dubai). IF true, this actions suggest a legitimate attempt to build a compliant and utility-driven project.Decentralization Efforts: MANTRA announced plans to reduce internal validators and onboard more external validators to enhance decentralization.Transparency Initiatives: The team launched a real-time tokenomics dashboard and committed to ongoing transparency reports.
The term "scam" is strong and implies deliberate fraudulent intent. Without conclusive evidence, their case is circumstantial (based on conjectures not hard proof).
P.S
REPUTATION IS GOLDEN.
For any potential investor, it is crucial to exercise extreme caution, conduct extensive due diligence, and understand the inherent risks associated with such volatile and controversial crypto projects. The past performance and controversies highlight the speculative nature and potential dangers.
$ONDO $AVAX #CryptoScamSurge #altcoins #RWA #TradingSignals