MANTRA Burns 300 Million OM Tokens to Restore Confidence After Historic Crash
MANTRA Initiates 300 Million OM Token Burn to Rebuild Trust After $5.5B Crash
In a bold effort to restore investor confidence, MANTRA CEO John Patrick Mullin has committed to burning 150 million OM tokens from his own allocation. The initiative is part of a larger plan to reduce OM’s circulating supply by 300 million tokens, with an additional 150 million expected to be burned by ecosystem partners. This strategic move comes on the heels of one of the most dramatic token crashes in recent memory, which wiped out over $5.5 billion in market value in a matter of minutes.
A Crisis in the Real-World Asset (RWA) Sector
On April 13, the OM token plummeted by more than 90% within an hour, a fall that followed an extraordinary rally from $0.013 to over $6 earlier this year. The crash slashed its fully diluted valuation from an eye-watering $11 billion to just a fraction of that, sparking widespread allegations of insider trading and manipulation.
A $40 million token deposit into OKX by a wallet reportedly linked to the team further fueled suspicions. This, combined with concerns over opaque over-the-counter deals, delayed airdrops, and high token concentration, led to panic-driven liquidations across major exchanges.
While Mullin has denied any wrongdoing, pointing instead to forced closures by centralized exchanges (CEXs), the crypto community remains skeptical. Comparisons to infamous collapses like Terra LUNA have only intensified scrutiny.
What the Token Burn Means for OM
In response, MANTRA is taking decisive action. Mullin’s personal 150 million OM tokens, staked since the mainnet launch in October 2024, are being unbonded and will be permanently removed from circulation by April 29. This will reduce OM’s total supply from 1.82 billion to 1.67 billion tokens.
Discussions with other ecosystem partners are underway to coordinate a second wave of burns, bringing the total reduction to 300 million tokens. Such a move is not only intended to address concerns around token oversupply but could also influence the network’s staking dynamics by decreasing the staked amount.
Can OM Recover?
Despite these efforts, questions remain about OM’s path forward. Market watchers are eyeing the $0.59 level as a key resistance point. A sustained break above it could signal a recovery, with targets at $0.71, $0.89, and eventually $1—an important psychological milestone.
However, the road to recovery is uncertain. If the token burn fails to shift market sentiment, or if external pressures persist, OM could revisit support levels around $0.51 and potentially dip further to $0.469.