UAE Shorooq partners, one of the major equity and token investors in MantraChain, the Layer 1 Blockchain for tokenization, whose token OM has lost more than 90% of its value in the past 24 hours, has made a statement noting that Shorooq and Mantra management and team members have not sold OM Tokens either in the lead up to, or during this crash.
They noted, ” The past 24 hours have been challenging for everyone involved with MANTRA, and as one of the key investors in the project, we feel it’s essential to provide you with the facts as we know them, and outline where we stand. It is important to note up front that Shorooq (its funds and founding partners) and MANTRA (management and team members), have not sold OM tokens in the lead up to, or during, this crash.”
The statement explains that through on-chain analysis and internal discussions, they confidently confirm that no exploit or malicious act occurred. Most of Shorooq tokens remain locked in accordance with the vesting schedule. Any rumors suggesting investor-led selling (including Shorooq or others) are patently false.
As per their explanation, the root cause of the crash was a forced liquidation of large leveraged positions that utilized the OM token as collateral. These positions were unwound abruptly by the exchange, triggering a cascade of sell-offs across the market, which ultimately resulted in the drastic price drop.
The MANTRA team is currently investigating the cause, and will be publishing detailed post mortem.
Shorooq finally notes in its statement that it will continue to back MANTRA because they believe in their vision to bring real world assets on chain. The statement says, ” Our support for MANTRA has always been grounded in the project’s technology, team, and value proposition, rather than short-term fluctuations in token price.”
