Upbit has flagged Mantra over unresolved security incidents involving its virtual assets, issuer-managed wallets and the distributed ledger used to issue, transfer and store OM. The exchange said its review found circumstances indicating that user harm has occurred or could occur.
The warning puts renewed attention on the security of the infrastructure supporting OM rather than simply its market performance. Upbit’s market-monitoring framework allows it to place digital assets under caution when concerns involving a project remain unresolved, with unresolved issues potentially leading to the termination of trading support.
The timing is also notable because Mantra’s token economics have changed materially. Upbit’s own circulating-supply schedule shows OM’s estimated circulating supply rising from about 1.22 billion tokens in January 2026 to 1.43 billion in August, while the project increased its inflation rate from 3% to 8% in August 2025.
MANTRA TOKEN DROPS 18% AS BLOCKCHAIN HALTS$OM has fallen 18.5% from its daily high, hitting a new record low after MANTRA Chain stopped producing blocks.
The team has paused the blockchain as a precaution while investigating an unexplained incident.
More details are expected… pic.twitter.com/oFqu5VeWqP
— CryptoSavingExpert ® (@CryptoSavingExp) August 21, 2026
Why exchange security warnings matter so much for smaller crypto tokens
An exchange such as Upbit is not simply another place where a token trades. In South Korea, its market decisions can have an outsized effect on liquidity because domestic exchanges account for a substantial share of local crypto activity. A caution notice can therefore change how traders assess an asset before any formal delisting takes place.
Upbit has a three-level warning structure for market risks, ranging from caution to warning and danger, and separately monitors issues that can lead to the termination of trading support. Once an exchange begins questioning the underlying infrastructure, the market can start pricing in the possibility of restricted liquidity before a final decision is made.
For OM, the issue is especially relevant because the token’s circulating supply has continued rising. An increase from roughly 1.07 billion OM in August 2025 to 1.43 billion a year later represents an increase of more than 34%. If security concerns are combined with rising supply, the market has to absorb both confidence risk and additional tokens entering circulation.
Related: South Korea to Launch Specialized Prosecutorial Unit to Combat Crypto Crimes
What does OM’s rising supply mean for investors?
More tokens entering circulation does not automatically mean the price will fall, but it increases the amount of demand required to maintain the same valuation. At the current schedule, Upbit’s data projects circulating supply to reach about 1.77 billion OM by August 2027, another increase of roughly 24% from the August 2026 level.
That means OM now faces two different questions. The first is whether the security concerns can be resolved to Upbit’s satisfaction. The second is whether demand for the token can grow quickly enough to absorb its expanding supply.
Upbit’s decision therefore puts attention on more than the immediate security issue. It also forces the market to consider whether OM’s underlying network activity and investor demand are strong enough to support its token economics under greater scrutiny.
Meanwhile, in July, Upbit added Derive (DRV) to its KRW, BTC and USDT markets, while nine other tokens received new BTC and USDT trading pairs in June. Although those listings boosted trading volume in the early stages, several failed to maintain their initial price gains as market interest cooled.
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