Mantra CEO John Mullin has announced that he plans to burn all of the team-held tokens in order to rebuild trust with the community. This decision comes after the Mantra (OM) token experienced a major crash on April 13, which many have compared to the Terra Luna collapse.
Mullin expressed his intention to burn the tokens in a post on X on April 16. He stated that he wants the community and investors to decide if he has earned back their trust after the tokens are burned.
Prior to the crash, Mantra had set aside 300 million OM tokens, which accounted for about 16.88% of the total supply, for the team and key contributors. These tokens were scheduled to be gradually released between April 2027 and October 2029. However, following the crash, these tokens are now worth around $236 million, compared to their previous value of approximately $1.89 billion.
The community has had mixed reactions to Mullin’s decision. While some support the token burn as a way to rebuild trust, others have raised concerns about how it might affect the team’s motivation. Ran Neuner, the founder of Crypto Banter, expressed the opinion that burning the tokens could weaken the team’s drive to continue building the project. Mullin responded by suggesting that the final decision could be made through a community vote.
In addition to the token burn, Mullin has promised to release a full post-mortem report explaining what went wrong during the crash. He also mentioned that Mantra plans to use its $109 million Ecosystem Fund for possible token buybacks and additional burns to help stabilize the price of OM.
There have been rumors suggesting that Mantra controls 90% of the OM tokens and that it was involved in insider trading or market manipulation. However, Mantra has strongly denied these rumors and instead pointed to “reckless liquidations” as the cause of the crash. Major exchanges Binance and OKX have also denied any involvement, attributing the crash to OM’s previous tokenomics and extreme volatility.
Despite the setback, Mullin expressed gratitude for the community’s ongoing support and acknowledged the losses faced by traders. He emphasized that Mantra has experienced multiple market cycles and remains committed to building the project.
The crash of the OM token has raised new questions about hype-driven DeFi projects and highlighted the importance of transparency, trust, and long-term sustainability. Mantra’s next steps will be crucial in determining whether the project can regain the community’s confidence.
FAQs:
– Why did the Mantra (OM) token crash? The OM token crashed due to massive liquidations triggered by extreme volatility, not insider trading or token manipulation.
– Is MANTRA (OM) a good investment? Based on the historical price movement, OM could be a profitable investment in the long term.
– Where Can I Buy MANTRA (OM)? MANTRA (OM) can be traded on major crypto exchanges, such as Binance, Bybit, OKX, KuCoin, etc.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
