Mantra CEO Mullin to Burn All Team Tokens After 90% OM Crash

Mantra's co-founder and CEO, John Patrick Mullin, has announced his intention to burn all of his allocated "team tokens" in an effort to restore confidence in the project following a significant 90% crash of the OM token within an hour. This drastic measure comes as a response to the severe market downturn that occurred late Sunday, where the OM token plummeted from $6 to below $0.4.

Mullin took to Twitter on Tuesday to share his plan, stating that he would burn all of his tokens from the "Team and Core Contributor" allocation, which is set to begin vesting in April 2027. He emphasized that this action is a personal commitment and that a comprehensive burn program will be developed for other parts of the OM supply. Mullin's tweet read, "I’m planning to burn all of my team tokens and when we turn it around the community and investors can decide if I have earned it back. We will create a comprehensive burn program for other parts of the OM supply."

The exact details of the burn, including the size, are still being finalized, but Mullin has expressed his desire to make it as large as possible. He also mentioned that other team members have shown support for this plan. The Mantra team has denied any involvement in the crash, attributing it to "reckless liquidations" on a major centralized exchange. Mullin clarified that the team did not sell any OM tokens and did not have leverage positions on exchanges, suggesting that the liquidations were carried out by external parties with significant capital.

Mantra, a layer-1 blockchain focused on tokenizing real-world assets with a strong emphasis on regulatory compliance, has partnered with notable entities such as Google Cloud and the Dubai property development company DAMAC Group. Despite the crash, the team maintains that the project itself is sound and that the incident was an isolated event. Mullin's actions are seen as a proactive measure to regain the trust of the community and investors, who have been shaken by the sudden and dramatic drop in the OM token's value.

Concerns have been raised about Mantra's use of over-the-counter deals, with allegations that these were used to artificially inflate the OM token's price. Mullin acknowledged that Mantra sold $20 to $30 million worth of OM over-the-counter to an unnamed group or individual and used the funds for buybacks via market makers. He defended this practice, stating that it was done to maintain a healthy market in low liquidity scenarios rather than to manipulate the price. Mullin emphasized that these buybacks were not intended to "pump" the price but to provide support and protect against downside risks.

Mullin's decision to burn his team tokens is a bold move aimed at demonstrating his commitment to the project and rebuilding trust. By taking personal responsibility and offering a transparent plan for the future, he hopes to reassure the community and investors that Mantra is on a path to recovery. The comprehensive burn program for other parts of the OM supply is expected to further bolster confidence in the project, as it signals a long-term commitment to reducing the token's overall supply and potentially increasing its value over time.