Mantra’s founder and CEO John Mullin started a $ 80 million burning of OM tokens to regain the trust of users following the token crash earlier in April. However, the question of underlying reasons for crashing remains unanswered, blockchain investigators said cointelegraph.
Unpacking About mantra’s crashing will require a detailed forensic study rather than a major blockchain review, says Natalie Newson, senior blockchain investigator in the blockchain security firm Certik.
“An entire forensic investigation, similar to what we saw in the post-FTX, will need to prove the claims of the calculated exploitation,” Newson told Cointelegraph, which featured challenges in monitoring over-the-counter (OTC) transactions.
Newson’s view of OM crash came days after Mantra released its post-crash statement, Asking centralized exchange partners to cooperate In additional incident unpacking.
Onchain activity compared to Opaque OTC deals
In response to the OM token crash, the Newson emphasized the importance of recognizing between public onchain public activity and the “more vague nature of OTC deals.”
Mantra CEO Mullin revealed In an interview with Coffeezilla on April 15 that the mantra team “made a small amount of OTCs,” up to $ 30 million of OM tokens.
Unlike traceable transactions in centralized exchanges, Crypto transfers of OTC It will involve a way of buying and selling cryptocurrencies out of exchanges, which are designed to enable deep liquidity and large trade while alleviating prices.
“In this case, the accumulation of approximately 100 million OM by a whale appears to be the result of secondary market transactions – it is not necessary direct activity from the mantra insiders,” Newson said.
Arkham or Nansen’s assessment is not enough
As previously mentioned, Mullin denied the allegations That OM crashing results from a insider -insider token, claiming that the blockchain’s analytics platform that Arkham “made a mistake” in some wallets.
Newson said data from Arkham and similar platforms such as Nansen were not sufficient to confirm or deny the involvement in the insider.
“To confirm the coordinated insider’s behavior, it will likely require more of the main wallets that monitor platforms such as Arkham or Nansen,” Newson said, and added:
“Blockchain analytics tools can provide directions, but without accessing Offchain agreements and centralized exchange records, drawing specific conclusions will be difficult.”
The Newson does not unite in highlighting the complex character of monitoring OM token crashing transactions.
Related: Mantra Om token Crash exposes ‘critical’ crypto liquidity issues
“There are ways to get data from the node, but it doesn’t seem easy to get a full history,” Whale Alert’s co-founder Frank Weert told cointelegraph.
Mullin had earlier said that the team was considering renting a forensic auditor following OM’s crash but did not make a decision on April 16.
Arkham did not respond to many cointelegraph questions to comment on the mantra incident.
Magazine: Altcoin season to hit in Q2? Mantra plans to win trust: Hodler’s Digest, April 13 – 19
