Mantra CEO Mullin Burns Tokens After OM Collapse
1min read Mantra CEO John Patrick Mullin has announced a plan to burn his allocation of om tokens in an effort to regain investor trust following a significant collapse in the protocol’s native token. Mullin stated that his tokens, part of a larger 300 million OM allocation designated for the team, are subject to a cliff until April 2027.
In a public statement released on April 15, Mullin committed to destroying his share of the future allocation and proposed that the community could decide whether he earns it back once the project recovers. He disclosed that he currently holds approximately 772,000 OM tokens, which is less than 1% of the over 80 million OM tokens in circulation as of April 15. Mullin allocated his tokens on the liquid staking protocol Fluxtra.
Despite his pledge and the disclosure of his current holdings, Mullin did not reveal his OM token stake and indicated that he would wait until the burn program was ready to share his portion of the token supply. The OM token, which powers the Mantra blockchain, experienced a dramatic drop in value on April 13, falling from around $6.30 to under $0.50 in a single day. This crash resulted in the loss of approximately $5.5 billion from its market capitalization, reducing it from roughly $6 billion to $530 million. Although OM has since rebounded to $0.81 with a market cap nearing $800 million, it remains significantly below its previous levels.
Mantra is a layer 1 blockchain built using the Cosmos SDK, focusing on tokenizing real-world assets and integrating regulatory compliance into its protocol. The platform recently obtained a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority, positioning it for growth in regulated digital asset markets.
Mullin attributed the collapse to sudden 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. Blockchain observers have 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, drawing comparisons to the 2022 Terra ecosystem implosion.
Mullin stated that the team is investigating and plans to publish details on centralized exchange involvement. He reiterated that Mantra’s tokenomics remain intact and verifiable through on-chain data.
