Weekly Update: 17th of April
What happened between the 11th and the 17th of April?
- The OM token from Mantra plummeted 90 percent, erasing $5.5 billion in market cap following a wave of liquidations. Read more
- Michael Saylor’s Strategy acquired 3,459 Bitcoin worth $285 million, reinforcing its position as the largest institutional holder. Read more
- The U.S. Securities and Exchange Commission postponed its decision on staking in Grayscale’s Ethereum ETF until June. Read more
- According to Reuters, local Chinese governments are selling seized crypto via overseas channels to offset economic deficits. Read more
Mantra (OM) crashes 90% within one hour
On April 13, 2025, Mantra’s OM token lost over 90% of its value in just one hour, dropping from around $6.30 to a low of $0.40 that day. The sudden crash was triggered by panic selling, which led to cascading liquidations on centralized exchanges, wiping out over $5.5 billion in market capitalization. The Mantra team denied involvement in any wrongdoing and attributed the collapse to market dynamics.
However, speculation continues over who is to blame — ranging from the team to market makers and exchanges. Large amounts of OM tokens were transferred to exchanges shortly before the crash, and with around 90% of the supply held by the project, liquidity was thin. Rumors also circulated that the team conducted OTC deals with discounts of over 50%. The resulting sell pressure triggered a massive wave of forced liquidations. This event highlights the need for thorough due diligence, especially regarding tokenomics and hidden risks before investing in digital assets.
Michael Saylor’s Strategy buys another $285 million in Bitcoin
Despite hinting at a pause in Bitcoin accumulation, Michael Saylor’s firm surprised the market by purchasing 3,459 BTC this week for $285.8 million. This brings Strategy’s total holdings to 531,644 BTC, accounting for over 2.5% of the total Bitcoin supply. The average purchase price was $82,618 per BTC. Saylor continues to emphasize Bitcoin’s role as a strategic reserve asset, even amid current market uncertainty.
SEC delays decision on Grayscale’s Ethereum staking ETF until June
The U.S. Securities and Exchange Commission has delayed its decision on allowing staking within Grayscale’s Ethereum Trust ETF until June 1, 2025. The proposed amendment would enable the fund to stake part of its ETH holdings, potentially generating additional yield for investors. While the delay is not surprising — the SEC often postpones until final deadlines — expectations remain that staking functionality will be approved later this year, which could significantly increase the fund’s appeal and boost Ethereum’s ecosystem.
Chinese governments quietly selling seized crypto
According to a recent Reuters investigation, local Chinese governments are quietly offloading large amounts of seized digital assets — including Bitcoin — through private brokers on foreign markets. The proceeds, reportedly in the billions, are being used to cover local fiscal shortfalls amid a slowing economy. Since domestic crypto trading remains banned, these sales occur overseas, raising concerns about transparency and potential corruption. Experts now suggest creating a national crypto reserve or fund in Hong Kong, where digital asset trading is legal. China remains one of the world’s largest holders of seized Bitcoin, with around 194,000 BTC under government control.
In other digital assets news
- Google begins enforcing MiCA advertising rules to better protect investors from fraudulent promotions.
- The Solana Sport ETF is expected to begin trading in Canada next week.
- Trump’s World Liberty Financial purchased $775K worth of SEI, the native token of the Sei blockchain.
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