Analysis: Mantra and market makers inflated OM token liquidity by exploiting data aggregator verification loophole

Odaily Planet Daily News In the latest episode of "The Chopping Block" podcast discussion, Mantra and its affiliated market makers allegedly exploited loopholes in the data aggregator's self-reporting system to manipulate OM token liquidity indicators. They distorted the circulating supply and trading volume to create a false impression of market activity. The Mantra team worked with market makers to circulate tokens between controlled addresses and exchanges to simulate trading volume, inflating data without a lot of natural participation. On-chain observers say that the real liquid supply of OM tokens is less than 1%, but it ranks in the top 25 by market value. The strategy exploits loopholes in the verification process of CoinGecko and CoinMarketCap, which rely on project teams to self-report data and cross-check it with exchange listing information and surface blockchain analysis. Those with ulterior motives can allocate tokens to market makers and plan seemingly natural trading activities to evade inspections, even if there are no retail investors involved. When a large OM holder sold, artificial liquidity collapsed and the price fell 90% in 90 minutes. The incident evaporated billions of dollars in market value and exposed the fragility of the asset's trading depth. (CryptoSlate)