While blockchain analysts are still piecing together the reasons behind the OM collapse, the event highlights critical issues for the crypto industry, according to Gracy Chen, the CEO of cryptocurrency exchange Bitget.“The Om token crash exposed several critical issues that we are seeing not just in OM, but also as an industry,” Chen said during Cointelegraph’s Chainreaction daily X show, adding:“When it’s a token that’s too concentrated, the wealth concentration and the very opaque governance, together with sudden exchange inflows and outflows, [...] combined with the forced liquidation during very low liquidity hours in our industry, created the big drop off.”🎙️ CEXs hit with outages as AWS runs into trouble.
Today, @RKBaggs and @ZVardai are joined by @GracyBitget, CEO of @Bitgetglobal on #CHAINREACTION to unpack the problem! ; Cointelegraph (@Cointelegraph) April 15, 2025Related: Google to enforce MiCA rules for crypto ads in Europe starting April 23At least two wallets linked to Laser Digital were among 17 wallets that moved a combined 43.6 million OM tokens — worth about $227 million at the time — to exchanges before the crash, the blockchain analytics platform Lookonchain reported on April 13, citing Arkham Intelligence data.
Mullin told an X user that the Mantra team believes one exchange “in particular” is to blame, but said the team was still “figuring out the details,” specifying that the exchange in question is not Binance. “I think OKX was the main exchange being accused of so-called liquidations,” said Chen, adding that the large transfers to multiple exchanges raised significant red flags.
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Author / Journalist: Cointelegraph by Zoltan Vardai
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