OM Token Plummets 50% Amid Forced Liquidations, MANTRA Responds

MANTRA, a blockchain platform focused on real-world asset tokenization, has recently faced significant challenges. On April 13th, the OM token experienced a dramatic price drop, causing widespread concern among its community. The sudden decline, which occurred around 18:28 UTC, was unprecedented and caught many token holders off guard. In response, the MANTRA team initiated an investigation to determine the underlying causes of the price movement and to confirm the current circulating supply of OM tokens. This effort aims to address community concerns and reinforce the market's future stability.

The investigation revealed that the MANTRA team was unable to make any sales during the market aggregate shock. All Mainnet OM tokens allocated to the team and advisors remain locked. The losses were associated with the ERC-20 OM tokens, which were fully distributed and in public circulation. Specifically, the total supply of classic ERC-20 tokens was distributed amongst the users, with 99.995% of tokens circulating within more than 123,000 wallets by 15 April. These tokens were initiated in August 2020, and hence, they are fully liquid and tradeable, which means that the trading activity was by external holders and broader market dynamics, and not by the MANTRA team.

In October 2024, with the launch of MANTRA Chain, a new supply of 888.88 million OM tokens was minted on the native blockchain. Of the total token supply, 77.5 million OM tokens are currently in circulation, representing a substantial share of the overall supply. The results showed that many OM tokens were transferred to the exchange as collateral at low trading volume. This led to forced selling and programs disposing of their holdings, which added further pressure on the token. First, the forced liquidations happened during periods of low market turnover, thereby triggering a negative feedback loop and price declines. The gaps between the exchange prices, especially OKX and Binance prices, deepened the liquidation phase.

In the future, MANTRA intends to take action to maintain this market and benefit its token holders. These include an OM Token buyback plan, a supply burn strategy, and John Patrick Mullin, MANTRA CEO, declaring plans to burn his team’s allocation. Further, the team intends to enhance coordination with exchange partners to achieve higher levels of clarity in trading activities. To improve the overall transparency in the token market, a live tokenomics bucket balance dashboard will also be implemented.

MANTRA has released a statement regarding the OM price crash, stating that the MANTRA team is currently operating as usual and is committed to taking all necessary measures to address the current market turbulence. During the OM price crash, the MANTRA team did not engage in any selling activities, and the token allocations for the MANTRA mainnet OM team and advisory team are all locked. MANTRA has discovered that a large amount of OM tokens were transferred to exchanges and used as collateral. Based on MANTRA's independent observation and review of the event, it can be confirmed that a forced liquidation event occurred during a period of low market activity, causing excessive selling pressure on the OM token market. MANTRA will release detailed information about its OM token support plan, which will include an OM token buyback and token supply burn plan. MANTRA CEO John Patrick Mullin has publicly committed to burning the funds allocated to the team.