Mantra's CEO Burns 16.88% of Tokens After 90% Crash

Mantra's founder and CEO, John Mullin, has announced a significant move to rebuild trust within the community following a dramatic 90% crash in the value of OM tokens on April 13. Mullin attributed the crash to "forced liquidations" on centralized exchanges, a claim that was met with skepticism from some community members who suggested that early OM investors might have been involved in the dumping.

In response to the community's concerns, Mullin pledged to burn the team's supply of 300 million OM tokens, which represents 16.88% of the circulating supply. This move was announced on April 16 via a post on X, where Mullin stated, "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." The tokens, worth around $1.9 billion before the price drop, are currently valued at approximately $234 million and are scheduled to be released in stages between April 2027 and October 2029.

Community reactions to Mullin's announcement have been mixed. Some members welcomed the move, suggesting it should be put to a decentralized vote. Others, including Crypto Banter founder Ran Neuner, expressed concern that burning the tokens could jeopardize the team's long-term motivation. The community's confidence has been significantly eroded by the crash, and rebuilding trust will be a gradual process.

Technical analysis of OM's price charts indicates a challenging recovery ahead. The 90% wipeout erased the trend that had been building in recent months, making it difficult to predict future movements. The rally from November was wiped out in a single day, and the 27.2% extension level below the November low was tested. A drop below $0.364 appeared possible, and the 3-day liquidation heatmap showed a build-up of liquidity at $1, just above current market prices. OM would need to climb another 30% to test this liquidity region.

The 24-hour heatmap highlighted $0.72 and $0.82 as nearby liquidation clusters, with the $0.82 cluster being more likely to be tested first. The order of this move was unclear, but the proximity of the $0.82 cluster suggested it would be tested before the $0.72 cluster. Whether Mantra can recover from Sunday’s plunge remains uncertain, but there is a chance that Real-World Asset (RWA) investors might see this as an opportunity. However, investors are advised to conduct their own research (DYOR) before making any decisions.

Sunday's crash resulted in a $5 billion loss in market cap for Mantra, raising questions about the value of the RWA ecosystem. Some investors might choose to wait rather than engage in Fear of Missing Out (FOMO) buying. The community's trust has been shaken, and the road to recovery will require significant effort and time. The decision to burn the team's tokens is a bold move aimed at rebuilding trust, but its long-term impact remains to be seen.