Kristoffer oersoe

$OM
2/6
Okay, folks, let's talk about a bumpy ride.
In April 2025, MANTRA's very own OM token took a massive hit, with its price plummeting by around 90% in just a few hours.
That's the kind of drop that makes your stomach do flips! This crash wiped out billions of dollars in market value, and understandably, it shook investor confidence to its core.

MANTRA's team pointed the finger at "reckless" forced liquidations by centralized exchanges (CEXs), especially during a weekend when trading activity tends to be lower.
Basically, when some traders who had borrowed money to trade OM couldn't meet their obligations, the exchanges automatically sold off their OM to cover the debts, and MANTRA argues this happened in a way that drove the price down further than it should have.

But here's the thing: while those liquidations definitely played a role, there were other factors at play,creating a perfect storm.

The Tokenomics Twist: Right before MANTRA launched its own blockchain the mainnet, they overhauled the OM token's economics.
This involved doubling the number of tokens in existence and switching to an inflationary model, meaning the number of tokens could keep increasing over time. Some analysts think this made the token more vulnerable to price drops.

Liquidity Limbo: The OM token market wasn't exactly what you'd call liquid.
In the financial world, liquidity refers to how easily you can buy or sell something without causing big price swings.
In OM's case, there weren't enough buyers to absorb the sudden wave of selling from those liquidations, which made the price crash even harder.

Concentration Concerns: There were worries that a relatively small number of people held a large chunk of the OM tokens. This kind of token concentration can make a cryptocurrency more susceptible to price manipulation
In Chapter 3, we will look at MANTRA's make-or-break moment and whether they can bounce back.
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MANTRA's Make-or-Break Moment Can They Bounce Back?

For months, the traditional finance sector has been aggressively pushing a terrifying narrative: if you let people earn yield on stablecoins, they will pull all their cash out of banks, and the entire U.S. lending market will collapse.
This has been the main weapon used to push the CLARITY Act, legislation aimed at completely banning crypto platforms from offering interest on your digital dollars. The Independent Community Bankers of America (ICBA) even claimed that stablecoin yields could wipe out $1.3 trillion in bank deposits. $But today, the White House Council of Economic Advisers (CEA) released their official numbers, completely dismantling the banking lobby's doomsday scenario.

The "Relief" is Non-Existent
The CEA proved that stripping away your stablecoin rewards would only boost total bank lending by $2.1 billion. To put that into perspective against the $12 trillion U.S. loan market, that is a meaningless 0.02% bump. The narrative that DeFi yield is destroying traditional lending is officially a myth.

The Wrong Banks Win
The community banks crying the loudest would not even be the ones cashing in. White House data shows that 76% of the reclaimed lending power would go straight to massive legacy banks. Small community institutions would be fighting over scraps, seeing just a 0.026% increase in loans.

You Foot the Bill
The most infuriating part of the CEA report is the cost. Economists concluded that a yield ban would result in a net economic loss of $800 million per year. Why? Because everyday people would be forced to surrender the competitive, free-market returns they earn in Web3, all to protect a legacy system that refuses to innovate.

The Bottom Line:
The White House just confirmed what the Web3 community has known from day one: stablecoin yields are not a systemic threat to the American economy. Banning them does not save the lending market—it just punishes everyday consumers for finding a better place to grow their money.
​The data is out in the open. The only question left is whether Congress will actually follow the science, or if they will let banking lobbyists force the CLARITY Act through anyway.
​#Web3 #Stablecoins #defi #CryptoNewss #CLARITYAct
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