Today in Crypto: Mantra Token Nosedives, NFT Trader Faces Prison, and Gaming Ads Struggle to Convert

Mantra Token Plunges Over 90%, Recovers After Team Statement

On April 13, the price of Mantra’s OM token suffered a dramatic collapse, plunging over 90% to around $0.38 before rebounding back above the $1 mark.

According to the Mantra team, the sharp drop was triggered by what they described as "reckless liquidations", which they are currently investigating. Co-founder JP Mullin and the team took to X (formerly Twitter) to clarify that "this was not our team" and promised to provide more details once the situation is fully understood.

Despite the temporary recovery, the event has rattled investors and raised concerns over potential vulnerabilities in token liquidity and risk management protocols.

Mantra token price and overview. Source: CoinGecko

CryptoPunks NFT Trader Faces Prison for $13M Tax Fraud

A prominent NFT trader who made millions flipping CryptoPunks could face up to six years in prison after pleading guilty to filing false tax returns.

Waylon Wilcox, 45, admitted to underreporting nearly $13 million in profits from NFT sales during the 2021 and 2022 tax years. In doing so, he reduced his tax obligations by over $3.2 million, according to the U.S. Attorney’s Office for the Middle District of Pennsylvania.

Wilcox pleads guilty to false tax filing, press release. Source: Attorney’s Office for the Middle District of Pennsylvania

Wilcox pleaded guilty on April 9 to two counts of filing false income tax returns. The sentencing details are pending, but federal law allows for a maximum penalty of six years imprisonment, supervised release, and substantial fines.

Crypto Gaming & Gambling Ads Are Most Expensive for User Acquisition

Crypto gaming and gambling companies are facing the highest user acquisition costs in the industry, according to a new report by Web3 marketing firm Addressable.

These sectors show a median Cost Per Wallet (CPW) of $8.74, with a lower quartile of $3.40, making them the priciest categories for onboarding users with existing crypto wallets.

CPW results across various sectors of the crypto industry. Source: Asaf Nadler

“Gaming and gambling campaigns are the most expensive,” said Asaf Nadler, Addressable co-founder. CPW is considered a higher-quality metric than traditional click-through rates because it focuses on users who are already equipped to interact with Web3 apps.

The data suggests that while gaming and gambling have potential for high engagement, converting users is significantly more costly than in other parts of crypto space.