Bitcoin Exchange Binance Made a Statement About OM Token, Which Had a Big Drop! Here Are the Details

Binance has released a statement acknowledging the recent price volatility surrounding the MANTRA project’s native token, OM, attributing the move to cross-exchange liquidations and significant changes to the token’s supply structure.

Binance Announces OM Token Amid Cross-Exchange Liquidations and Tokenomics Shift

The exchange stated risk control measures and ongoing monitoring following sharp price fluctuations in MANTRA’s native token.

According to the exchange, its internal analysis shows that the price fluctuations observed over the past 24 hours were largely the result of gradual liquidations across multiple trading platforms. OM experienced sharp price movements that caught the attention of investors and led to the platform reaffirming its risk management practices.

“Since October last year, Binance has proactively implemented various risk control measures, including reducing the available leverage for OM. These actions are part of our ongoing efforts to adjust risk exposure in response to evolving market conditions,” the company said in a statement.

The exchange also noted that in January, OM published an alert message on its spot trading page to inform users about significant changes in token supply dynamics.

This message refers to changes to OM’s tokenomics that have increased the circulating supply. In light of recent price action, Binance has updated this alert to highlight the token’s high volatility.

Despite the turbulence, Binance reiterated its commitment to protecting users through continuous monitoring and responsive platform management.

“We are committed to monitoring the situation closely and will continue to take appropriate measures to protect our users and preserve the integrity of our platform,” the exchange said.

OM’s recent volatility highlights the broader risks associated with tokenomic changes and leveraged trading, particularly when amplified by fragmented liquidity across exchanges.

Binance’s public statement and additional measures reflect increasing pressure on major trading platforms to improve transparency and risk mitigation in the face of increased market scrutiny.

*This is not investment advice.