Crypto Rug Pull Losses Soar to $6 Billion with Mantra Network’s Collapse
In 2025, crypto rug pull losses have dramatically increased by 6,499%, totaling nearly $6 billion. This surge is majorly due to the Mantra (OM) network’s massive collapse, which alone accounts for 92% of these losses. The crisis was triggered by 43.6 million OM tokens worth $227 million being moved by 17 wallets to exchanges, causing the token’s price to plummet by over 90% within an hour. Although the frequency of such scams has decreased from 21 incidents in early 2024 to 7 during the same period in 2025, the financial impact of each has grown. This trend reflects a shift towards more sophisticated executions, especially in the memecoin sector. These developments underscore the importance of increased vigilance among traders, as the financial devastation of these scams can be significant, despite their reduced frequency.
Bearish
The rug pull by Mantra has not only caused significant financial losses but has severely deteriorated investor confidence in the project, leading to a bearish outlook for the OM token. Such massive sell-offs and insider manipulation signals often result in prolonged negative sentiment and reduced liquidity, making recovery challenging. Historically, projects implicated in such fraudulent activities struggle to regain investor trust, resulting in continued price depreciation and hesitation among new investors to participate. Thus, this event is expected to have a sustained negative impact on the cryptocurrency’s market behavior.