Story Token Plunges 25% in an Hour, Echoing Mantra’s Crash
The Story (IP) token experienced a dramatic 25% drop within an hour, sparking fears of a repeat of the Mantra (OM) crash. On April 14, IP’s value fell from $4.24 to a low of $3.02. Although it later recovered to $3.73, the sudden decline raised questions about market stability.
Traders on social media drew parallels between the Story crash and Mantra’s 90% value loss,which wiped out $5 billion in market cap. Crypto journalist Colin Wu noted that most IP trading occured on Binance Futures and OKX spot markets, the same platforms linked to the Mantra crash.
Following the drop, Binance and OKX offered differing explanations. Binance agreed with the Mantra CEO, attributing the crash to forced liquidations due to low liquidity. OKX, however, pointed to changes in Mantra’s tokenomics and significant token deposits to centralized exchanges, suggesting insider selling.
smaller projects like Story and Mantra are particularly vulnerable to volatility. Low liquidity means a few large trades can cause major price swings. Kaiko research reported that Mantra’s crash led to $21 million in liquidations, further pressuring prices.
While Story recovered, the incident highlights the risks faced by smaller tokens. In low liquidity situations, big trades can trigger significant price movements, making these assets highly volatile.
