Mantra's CEO Proposes Burning Tokens After 90% Crash

Mantra's CEO, John Patrick Mullin, has proposed a significant measure to regain investor trust following the recent crash of the OM token. The token, which is part of the Mantra ecosystem, experienced a dramatic 90% drop in value within a single hour. This sudden plunge has raised concerns among investors and the broader crypto community about the stability and integrity of the project.

Mullin's proposal involves burning his personal allocation of OM tokens. This move is intended to reduce the circulating supply of the token, which could potentially increase its scarcity and value. By demonstrating a commitment to the project's long-term success, Mullin aims to reassure investors that the team is taking proactive steps to address the issues that led to the crash.

The crash of the OM token has been attributed to "reckless forced closures initiated by centralized exchanges," according to Mullin. This explanation suggests that external factors, rather than internal mismanagement, were the primary cause of the token's dramatic decline. However, the community's concerns about a potential rug pull scam have not been entirely alleviated, despite Mullin's assurances.

The Mantra team plans to leverage its $109 million Ecosystem Fund, which includes both OM tokens and dollar assets, to stabilize the project and rebuild trust. This fund will be used to support the ecosystem's development and ensure that the project can continue to operate effectively despite the recent setbacks.

Mullin stated that his held tokens are part of the team's reserved 300 million OM tokens, with the unlock period ending in April 2027. Although Mullin made a commitment and disclosed his current holdings, he did not reveal the specific amount held, stating that he would announce the token holdings when the burn plan is ready. According to Tokenomist data, Mullin currently holds about 772,000 OM tokens, less than 1% of the circulating supply of over 80 million OM tokens as of April 15th.

Mullin also stated in a post that a post-mortem report will be released within the next 24 hours, detailing the events that have occurred since early Monday morning and will be validated in on-chain and off-chain data. After releasing this incident report, he will share more information about the OM token buyback plan and the OM supply burn plan to rebuild market trust and demonstrate his long-term commitment to OM/MANTRA.

The proposal to burn individual OM shares is a bold move that could have significant implications for the project's future. By reducing the supply of tokens, the team hopes to create a more stable and valuable asset that can attract new investors and regain the trust of those who have been affected by the recent crash. However, the success of this strategy will depend on the team's ability to execute it effectively and address the underlying issues that led to the token's dramatic decline.