Will the collapse of OM cause the RWA trend to fail?

[KryptoBull]

RWA was once considered a major trend in the crypto market because it could provide new value to many asset classes, including securities and commodities. Many large organizations are experimenting with asset tokenization and have received positive feedback. The enormous scale of assets that can be tokenized brings confidence that the RWA trend will lead the altseason this cycle.

A few weeks ago, OM was still a popular token in RWA, having increased more than 500 times from 0.0175 USD to 9.11 USD, something that reminded us of the success of SOL and AXS in the 2021 season. This made me also want to participate in the RWA trend ^[1] and be ready to invest in a few other tokens like PENDLE and RSR as soon as the market recovers and grows when the trade war is resolved.

Unfortunately, things didn't go so smoothly. It seems the excitement that OM brought made us forget to carefully assess the safety of this project. KOLs talked about profits instead of researching tokenomics or business models, so we were completely surprised by the collapse of OM price and the allegations against the #DevelopmentTeam  ^[2].

I don't have enough technical knowledge to assess the reliability and accuracy of the allegations and responses. Even the proposed token burn plan doesn't give me more confidence in OM in particular and the RWA trend in general. I always try to avoid all risks and uncertainties to protect my capital and profits in this market. Many people have thought about the impressive recovery of OM in the near future, for example, creating a new ATH, but I'm not sure if this can happen. I'd rather buy DOGE than put capital and trust in a weak project in the market.

I would like to know your opinion on this issue:

• Do you think the collapse of OM price was inevitable or unexpected?
• Do you still trust and want to participate in the RWA trend this season?
• Will this event negatively impact the uptrend and altseason in 2025?

References:
1. Coingecko: Top Real World Assets (RWA) Coins by Market Cap
2. Mantra’s OM Crashes 90% in Bizarre Sell-Off as Team Alleges 'Forced Liquidations'
Note:

• My opinion has been presented in a topic, on BitcoinTalk forum.
• This topic on AltcoinsTalks forum has included a minor change in the way my opinion is presented.
• This statement is to avoid accusations of plagiarism.

[Mia Chloe]

RWA was once considered a major trend in the crypto market because it could provide new value to many asset classes, including securities and commodities. Many large organizations are experimenting with asset tokenization and have received positive feedback.

These days it's too difficult or rather it seems to difficult for altcoins and meme coins these days to hold for long on like back in the day when greed was low making them  remain in an uptrend. Basically what happens these days is that project developers are usually looking for the slightest opportunity to pull out liquidity from the market.

As a result of this coins don't hold for long that easy. You find out that even coins that the developers want to hold for long still drops because bigger investors come in buy a bunch of it and then sell off once making them dump again.

[Mr. Magkaisa]

        -     I think I read something on the X platform where an investor invested in OM(mantra) worth 3M$, I just can't remember which account on the X platform, I think I just passed by it. He bought it before the huge drop, it was like OM was still at 6$ each, then when he bought it after a short-period of time, it suddenly dropped below 1$.

Then it became worth around 200k$, which is more than the value of his OM, and after that incident, it seems that the investor took legal action because of his investment in mantra. Anyone can really be hurt by such an incident.

[SmartGold01]

Will this event negatively impact the uptrend and altseason in 2025?

At first before thinking this would affect the market of altcoin season this year 2025 we should first think about the position of OM in the market and how much liquidity that was pulled out from the OM project, as I think any coin that is not Ethereum or Bitcoin may not have that effect to affect the market negatively or positively.

Of course I wouldn't focused on altcoin instead it's better to only focused on bitcoin, though had gone through the RWA tokens and they are actually nice to make investment but still, all are being classified as Altcoin and there are no difference between them and others since the market are being influenced by bitcoin and anything is possibly and likely to happened.

Talking about PENDLE, well I have no enough technical knowledge to analyze about that coin but from the research on coingecko, I have seen that PENDLE already gain an ATH of $7.50 around Apr 11, 2024, and this is about 1 years and some days and the current price is $3.06. To me any Altcoin or project that has once gained ATH may likely face difficulties to recover back to their previous price even soar about their previous ATH.

+1 karma for you

[robelneo]

It's too early to tell that; the developers promised a recovery plan, and they already stated that they are here to stay for good. Based on their statement, it's the anomaly in the algorithm that forced the exchange bot to dump OM on their platforms.
But with what happened, RWA investors will have a look now at the RWA tokens that they are holding to avoid a similar scenario from happening.

[salad daging]

It's too early to tell that; the developers promised a recovery plan, and they already stated that they are here to stay for good. Based on their statement, it's the anomaly in the algorithm that forced the exchange bot to dump OM on their platforms.
But with what happened, RWA investors will have a look now at the RWA tokens that they are holding to avoid a similar scenario from happening.

I'm not sure the developer promises a bounce back in the near future if it has already slumped then it will be difficult to recover again maybe some OM investors have left and they are disappointed in this RWA token.
There is still a lot of speculation out there that this is all because of the team itself but they don't want to admit this as a mistake.

[MrSpasybo]

I would like to know your opinion on this issue:

• Do you think the collapse of OM price was inevitable or unexpected?
• Do you still trust and want to participate in the RWA trend this season?
• Will this event negatively impact the uptrend and altseason in 2025?

1. I believe the price decrease of OM was inevitable and predictable. I have a topic focusing on trading to analyze this issue.

2. The RWA trend still holds value. We see Tether still succeeding in tokenizing $US, and ChainLink still has oracles providing good support for RWA. The collapse of OM only slows down the progress of RWA in this cycle.

3. OM hasn't created a chain of incidents in the market like what UST-LUNA did in 2022. OM market cap is also quite small in the market, so the consequences aren't really significant. It could have a positive impact by making investors more cautious and research more thoroughly before investing.

[yhiaali3]

Frankly, what happened was unfortunate and unexpected. The OM token was a good token with strong projects expected to see significant growth in the future, so what happened surprised everyone.

Regarding the second question, I will not trust or participate in the RWA trend this season because what happened taught everyone a great lesson about not fully trusting this type of project. It is difficult to regain confidence after the sudden collapse of OM, the true causes of which are not yet clear.

Regarding the last question, I do not believe this event will negatively impact the upward trend and the altcoin season. There will inevitably be an impact, but it will be limited, as the collapse of one token does not mean the end of the market.

[Trongduy]

- I think I read something on the X platform where an investor invested in OM(mantra) worth 3M$, I just can't remember which account on the X platform, I think I just passed by it. He bought it before the huge drop, it was like OM was still at 6$ each, then when he bought it after a short-period of time, it suddenly dropped below 1$.

Then it became worth around 200k$, which is more than the value of his OM, and after that incident, it seems that the investor took legal action because of his investment in mantra. Anyone can really be hurt by such an incident.

Behind every project implosion, there's always a long tale and conspiracy theories spun by those with enough firepower to manipulate the market. OM was practically a nobody last season, but this time it's seen a massive price surge, not lagging behind those AI-trend tokens at all, even though RWA hasn't quite become a major trend in the crypto space yet.

Investors really ought to do their homework before deciding to buy and hold, but sadly, the profits have blinded them. OM is going to be a big lesson for all of us, and I reckon we'll see plenty more rug pulls like this down the road, because a lot of tokens have been pumped up to ridiculously unreasonable levels compared to their actual potential.

[Mr. Magkaisa]

- I think I read something on the X platform where an investor invested in OM(mantra) worth 3M$, I just can't remember which account on the X platform, I think I just passed by it. He bought it before the huge drop, it was like OM was still at 6$ each, then when he bought it after a short-period of time, it suddenly dropped below 1$.

Then it became worth around 200k$, which is more than the value of his OM, and after that incident, it seems that the investor took legal action because of his investment in mantra. Anyone can really be hurt by such an incident.

Behind every project implosion, there's always a long tale and conspiracy theories spun by those with enough firepower to manipulate the market. OM was practically a nobody last season, but this time it's seen a massive price surge, not lagging behind those AI-trend tokens at all, even though RWA hasn't quite become a major trend in the crypto space yet.

Investors really ought to do their homework before deciding to buy and hold, but sadly, the profits have blinded them. OM is going to be a big lesson for all of us, and I reckon we'll see plenty more rug pulls like this down the road, because a lot of tokens have been pumped up to ridiculously unreasonable levels compared to their actual potential.

         -     The hard part is that we don't know which tokens are likely to be rug pulls and how they will perform, but here in OM, it seems like the developer isn't saying that what's happening is a rug pull because they're updating most often now because they're really trying not to lose most of their community and it seems like they have a plan to do something to make it up, or so sure if they do, they'll burn millions of OM.

So if that's true, even if it's only half of their previous price before it was dumped and they still burn millions, I think it's a good buy now in my opinion. So I'll probably buy it now, even if it's just a small amount, so at least I'll have bought some OM anyway, because I think it can still recover.

[Stompix]

RWA was once considered a major trend in the crypto market because it could

it could...and here we stop.

What some guys who are thinking we will need a token to survive in the next decade are missing out is the thing that even if something can do a thing, it doesn't mean the actual action is needed.
The concept of RWA  is not new, it doesn't even belong to crypto, we had REITs, an established and secure way of doing things.

The only extra thing that RWA on blockchain brought was its weakness, and so many people wondered about it, why would you need a tradable token when the actual assets are the ones being traded, from the start it made as much sense as trading steel in oil or trading real estate in tesla shares.

And as usual, as with LUNA, the actual peg to value mechanism failed...

2. The RWA trend still holds value. We see Tether still succeeding in tokenizing $US, and ChainLink still has oracles providing good support for RWA. The collapse of OM only slows down the progress of RWA in this cycle.

Tether didn't tokenize the USD it created an artificial peg between two currencies, just like for example, Denmark is doing with the Euro.
What RWA does is double speculation on the price of an asset, much like pricing the assets of a company like let's say Microsoft in a token while trading the token on share prices, which of course will go wrong.

[KryptoBull]

Frankly, what happened was unfortunate and unexpected. The OM token was a good token with strong projects expected to see significant growth in the future, so what happened surprised everyone.

Regarding the second question, I will not trust or participate in the RWA trend this season because what happened taught everyone a great lesson about not fully trusting this type of project. It is difficult to regain confidence after the sudden collapse of OM, the true causes of which are not yet clear.

Regarding the last question, I do not believe this event will negatively impact the upward trend and the altcoin season. There will inevitably be an impact, but it will be limited, as the collapse of one token does not mean the end of the market.

You're absolutely right! The collapse of OM price didn't really impact the recovery of BTC and the broader market, and the media isn't talking about OM as much as it was a few days ago. Thankfully that happened, BTC is back to 94K USD, and some altcoins have almost climbed out of their price bottoms.

RWA is still a huge and super promising trend, and big companies are also talking about its value, like tokenizing stocks to increase liquidity and transparency on the blockchain. The failure of OM made investors a bit skeptical about the RWA trend, but they'll likely FOMO in again quickly once the market shows a few more positive signals for token price increases.

[Mr. Magkaisa]

Frankly, what happened was unfortunate and unexpected. The OM token was a good token with strong projects expected to see significant growth in the future, so what happened surprised everyone.

Regarding the second question, I will not trust or participate in the RWA trend this season because what happened taught everyone a great lesson about not fully trusting this type of project. It is difficult to regain confidence after the sudden collapse of OM, the true causes of which are not yet clear.

Regarding the last question, I do not believe this event will negatively impact the upward trend and the altcoin season. There will inevitably be an impact, but it will be limited, as the collapse of one token does not mean the end of the market.

You're absolutely right! The collapse of OM price didn't really impact the recovery of BTC and the broader market, and the media isn't talking about OM as much as it was a few days ago. Thankfully that happened, BTC is back to 94K USD, and some altcoins have almost climbed out of their price bottoms.

RWA is still a huge and super promising trend, and big companies are also talking about its value, like tokenizing stocks to increase liquidity and transparency on the blockchain. The failure of OM made investors a bit skeptical about the RWA trend, but they'll likely FOMO in again quickly once the market shows a few more positive signals for token price increases.

      -     But you know, honestly speaking, even if that's what happened to him, I'm already doing a DCA anyway, because from what I've seen, the OM developer is not neglecting to provide updates, in fact. So, they're not really neglecting, though the negative impact of what happened is really strong and I think it will recover
in the near future.

So I'm doing this knowing the possible risks that I might face here if, for example, my expectations don't happen. And I also know that there are others
for sure who have also done a DCA here.

[electronicash]

OM is just the start of this tokenization though, it will probably have success also when the hype starts. when the price burst fast, pretty sure a lot of traders are also jumping right into it and dumps fast too. there have been many companies interested in tokenization, this is different from the digital assets in crypto but if they tokenize the security tokens i guess this is going to be backed by the SEC as well.

Bitbond i believe was one of the company initiating the tokenization of companies already.  RWA will be good for crypto market as well.

[yhiaali3]

So I'm doing this knowing the possible risks that I might face here if, for example, my expectations don't happen. And I also know that there are others
for sure who have also done a DCA here.

Yes, the DCA strategy here may be good for capitalizing on any expected or unexpected decline, but it's an extremely risky game. If the team's promises don't pan out and the decline continues to lower levels, you could lose your money.

The team has promised to burn its tokens and is trying hard to revive the token, because if they fail to do so, it could spell their end. But despite all these efforts, there's a chance they won't succeed because they've lost the trust of a large portion of the community.

In any case, as long as you understand the risks, I wish you the best in this venture.