April 2025 Crypto Crisis: RWA, DeFi, and DAO Governance Under Fire as Mantra, ArbitrumDAO, and Hyperliquid Face Major Setbacks
In April 2025, the crypto sector experienced severe turmoil as leading projects across real-world asset tokenization (RWA), decentralized finance (DeFi), and DAO governance faced major crises. Mantra, a prominent RWA platform, reportedly saw its OM token plummet by 90% within minutes, erasing $5.5 billion in market cap. This dramatic drop followed a year of massive gains but was triggered by opaque changes to token release mechanisms and inadequate risk communication, sparking widespread concern over the future of RWA platforms. Amidst these challenges, Mantra had recently launched an RWA/DeFi fund and secured a major $1 billion tokenization deal with DAMAC Group while aiming for regulatory compliance via Dubai’s VASP license, but the crash raised questions about the sustainability of these ambitions. Meanwhile, ArbitrumDAO’s vulnerabilities were exposed when an individual cheaply acquired $6.5 million in ARB voting power through third-party delegation, igniting debates on the flaws of ’one coin, one vote’ systems and DAO governance integrity. At the same time, decentralized derivatives exchange Hyperliquid narrowly prevented disaster after a targeted attack on its JELLY market revealed critical liquidity and risk management flaws, forcing centralized intervention to avert over $100 million in losses. Collectively, these events underscored the sector’s acute need for transparent governance, robust risk controls, and improved operational resilience. The crypto market now faces an urgent imperative to rebuild trust, manage risk more effectively, and restore investor confidence to prevent further capital flight.
Bearish
The combined developments—Mantra’s 90% token plunge due to lack of transparency, ArbitrumDAO’s governance flaws exposed by cheap accumulation of voting power, and Hyperliquid’s near-collapse from market manipulation—are collectively negative signals for the affected tokens and similar platforms. For OM and related RWA tokens, the sudden crash and questions around risk management are likely to erode investor confidence, leading to continued downward price pressure in the short term and lingering caution in the long term. Issues in DAO governance (ARB) and exchange protocol vulnerabilities (JELLY, Hyperliquid) similarly undermine the credibility and perceived safety of these ecosystems. Unless robust reforms and trust restoration measures are enacted, traders are expected to remain risk-averse, resulting in suppressed prices and potential capital outflows. In summary, the immediate and mid-term impact on the mentioned assets is bearish given the erosion of market trust, increased risk aversion, and the specter of further disruptive vulnerabilities.