Mantra (OM) Token Stages Partial Recovery After 90% Crash, CEO Pledges Token Burn

After experiencing a catastrophic 90% price collapse over the weekend, the Mantra (OM) token has begun showing signs of recovery, currently trading above $0.75. While still down 88% from its weekly high, OM has rebounded approximately 60% from its lowest point, suggesting potential stabilization in the market.

Mantra CEO Mullin Promises Team Token Burn to Rebuild Trust

Mantra CEO John Patrick Mullin stated intentions to burn his personal allocation of OM tokens, part of the larger 600 million tokens (16.88% of total supply) earmarked for the team and core contributors, in an attempt to rebuild community faith.

On social networking platform X on April 16 Mullin said, “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.”

Mullin clarified that he had staked roughly 772,000 OM tokens on the Fluxtra platform, less than 1% of the total supply at current. The team’s tokens are locked with a vesting schedule running through October 2029 starting in April 2027.

OM/USD Technical Analysis

The coin has seen notable buying interest following the April 13 meltdown when OM dropped from $6.30 to as low as $0.52, wiping off around $5.5 billion in market value. According to on-chain data analysis, traders bought around 35 million tokens valued roughly $35 million as prices dropped, therefore displaying “aggressive buying” during the crash.

OM’s rise, which sees the token momentarily approach $0.99 in recent trading — a 170% recovery from weekend lows – has been aided by this buying pressure. Analyzers are still wary about the longevity of this comeback, though; some believe it may be a “dead cat bounce” or perhaps a bull trap.

Mantra’s TVL Anomaly Raises Questions

Fascinatingly, Mantra’s Total Value Locked (TVL) jumped by more than 500% after the price collapse, coming out to be 4.21 million OM (about $3.24 million). Market participants have questioned this odd trend whereby TVL rises during a price decline.

Rather than being divided across several applications, about 97% of this TVL is contained in Mantra Swap, the native decentralized exchange, suggesting perhaps limited ecosystem development.

Why Did Mantra (OM) Token Crash?

Mantra’s team has blamed “reckless forced liquidations” by centralized exchanges during a period of limited liquidity for the crisis. With around $21 million in long positions sold on OKX alone, OM’s market depth reportedly plummeted from $290 million to only $473,000 during the meltdown.

Still, several analysts and investigators—including well-known YouTube fraud investigator Coffeezilla—have called into doubt possible insider trading. Allegations Mullin has denied: Coffeezilla stated the Mantra team sold $25–45 million worth of tokens in over-the-counter sales at notable discounts later using $5–10 million to purchase back OM.

Mantra’s Recovery Strategy: The Road Ahead

Apart from the suggested token burn, Mullin has promised a thorough post-mortem study elucidating the mistakes. He has also described strategies to use the $109 million Mantra Ecosystem Fund for possible token buybacks and burns to help OM’s price to be further stabilized.

Emphasizing real-world asset tokenization and recently granted a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA), the project maintains that its principles hold true despite the pricing volatility.

Investors are alert as the scenario develops to see whether OM’s comeback will be sustained or if more turbulence is ahead for the underprivileged coin.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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