Mantra CEO Mullin to Burn 772,000 OM Tokens Amid 90% Price Plunge

JP Mullin, the CEO of Mantra, has announced his intention to burn his entire allocation of 772,000 OM tokens. This decision comes in response to the recent collapse of the Mantra project and allegations of insider activity. The Mantra token (OM) has plummeted over 90% from its recent high, resulting in a loss of $5 billion in value. Mullin made this announcement on Apr. 15 via X, addressing a community member who suggested delaying the upcoming token unlocks as a sign of long-term commitment.

Mullin clarified that the team's token allocation does not begin vesting until 2027, which is 30 months after the mainnet launch scheduled for October 2024. He emphasized that he plans to burn his entire team allocation and leave it to the community to decide if he has earned it back in the future. This move is aimed at rebuilding trust after the recent crash.

The proposal sparked a debate within the community. Crypto Banter founder Ran Neuner argued that burning tokens could be a mistake, as strong incentives are crucial for keeping project teams motivated. Mullin responded by stating that his plan only applies to his personal allocation and that the goal is to restore trust. He also suggested the possibility of placing the tokens into a community-controlled mechanism instead of burning them outright.

Mullin had previously shared a screenshot showing his 772,081 OM tokens staked on Fluxtra, noting that he was "100% staked" on the platform. The team's total allocation of 300 million OM tokens is locked until April 2027. Mullin stated that restoring the OM token's value is the project's top priority, with strategies like buybacks and token burns being considered.

The situation intensified further when popular online scam investigator Coffeezilla posted a summary of his YouTube interview with Mullin. Coffeezilla claimed that the Mantra team sold $25–$45 million worth of tokens in over-the-counter deals at a 30–50% discount and later used $5–$10 million to buy back OM. Coffeezilla argued that this was a form of price manipulation, which Mullin denied.

The crash of the OM token was exacerbated by low liquidity and forced liquidations. Market depth on OM dropped from $290 million to just $473,000. Around $21 million in long positions were liquidated on OKX alone. At the time of the report, the OM token was trading at $0.7479, down 88% in the past seven days.

Mullin's decision to burn his token allocation is a significant move aimed at regaining the trust of the community and investors. By taking this step, he hopes to demonstrate his commitment to the project's long-term success and to address the concerns raised by the recent collapse. The community's response to this proposal will be crucial in determining the future direction of the Mantra project.