**Binance Founder CZ Speaks About the Collapse of Mantra (OM): Reveals Key Factor Indicating Risks in Altcoins**
**Mantra (OM)** shocked investors by experiencing a drop of more than 80% in seconds.
While the reason for this sudden collapse is being questioned, **MANTRA CEO John Patrick Mullin** stated that no team member or partner sold OM tokens. Mullin claimed that the decline was due to intentional actions against OM token holders by centralized exchanges.
**OKX founder and CEO Star Xu** referred to the events as a "major scandal" and announced that he would soon publish a detailed report.
**Binance** stated in its announcement that initial findings revealed the sudden drop in OM token prices was caused by **inter-exchange liquidations**.
**Binance Founder Changpeng Zhao (CZ)** also made a statement regarding the matter. CZ, who said, “Like everyone else, I wondered ‘what happened?’ I had no knowledge of the project until the collapse,” also addressed questions about whether Binance had exercised the necessary caution regarding OM.
CZ emphasized that Binance has taken various **risk control measures** such as reducing leverage ratios for OM tokens since October of last year and that they have acted cautiously during this process.
CZ also mentioned the fundamental factors that investors should pay attention to in order to understand the risks in projects like OM, stating that **the “real user count” is an important indicator showing the risk level in altcoin projects**.
Finally, CZ highlighted that investors should base their investments on solid fundamentals such as **user growth, revenue, and profitability** rather than rumors and advertisements.
*This article does not constitute investment advice.*
#om #Binance #CZ #OKX $OM $OM $BTC
