MANTRA's Price Surges 35% Amidst OM Token Collapse

MANTRA's latest price was $0.7995, up 35.028% in the last 24 hours. This surge in price comes amidst a backdrop of significant challenges faced by the cryptocurrency, which has recently experienced a dramatic collapse of its native token, OM. The token's value plummeted, losing over 90% of its worth in a single day, sparking widespread concern and speculation within the cryptocurrency community. Many have drawn parallels to the 2021 collapse of Luna and FTT, highlighting the volatility and risks associated with the cryptocurrency market.

JP Mullin, the CEO and co-founder of Mantra, has been actively addressing the crisis. In a public statement, Mullin proposed burning his allocation of OM tokens as a measure to restore investor confidence. He revealed that his tokens, part of a broader 300 million OM allocation earmarked for the team, are subject to a cliff until April 2027. Mullin pledged to destroy his share of that future allocation and stated that the community could decide whether he earns it back once the project recovers. He currently holds roughly 772,000 OM tokens, less than 1% of the over 80 million OM tokens circulating supply as of April 15.

Mullin attributed the collapse to abrupt liquidations by centralized exchanges during a low-liquidity trading window, which triggered rapid sell pressure. He denied that team members or investors sold tokens, emphasizing that all allocations remain locked under a public vesting schedule. However, blockchain observers raised the possibility of insider activity or wallet compromises, citing suspicious fund movements. Over $70 million in OM was reportedly moved to exchanges through a single intermediary wallet before the collapse, prompting comparisons to the 2022 Terra ecosystem implosion. Mullin stated that the team is investigating and plans to publish details on centralized exchange involvement, reiterating that Mantra’s tokenomics remain intact and verifiable through on-chain data.

In response to the crisis, Mullin expressed gratitude to partners, investors, and the Web3 community for their support. He acknowledged the challenges faced by traders and expressed sincere sympathy to those affected, instructing his team members to support users at this crucial stage and help them mitigate the challenges. Mullin also thanked MANTRA’s long-term investors, especially Shorooq & Laser Digital, for their transparency and communication during the crisis. He emphasized that the company remains committed to its current and future targets while facing challenges and plans to maintain its growth trajectory in every economic condition.

Mullin outlined a recovery plan that includes the release of a detailed investigative report to address the issues and recover market confidence. The company will create both OM token buyback procedures and supply reduction programs, rebuilding user trust while establishing sustainable expansion for the token and the whole MANTRA initiative. He expressed appreciation for the MANTRA team’s extraordinary commitment and hard work, stating that working together is the key to solving present-day problems. Mullin also emphasized the company’s commitment to clear and direct communication, promising to disclose accurate and timely information regarding the situation to the community without delay. He requested users to be cautious and not to believe unverifiable information.

Despite the challenges, Mantra has secured a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA), positioning it for growth in regulated digital asset markets. The platform focuses on tokenizing real-world assets and integrating regulatory compliance into its protocol, which could be a significant advantage as the cryptocurrency industry continues to evolve. The company’s resilience and commitment to transparency and communication will be crucial in rebuilding trust and confidence among investors and the broader cryptocurrency community.