TLDR
- MANTRA (OM) token experienced a 90% crash from $6.30 to around $0.52 over the weekend but has rebounded about 30% to $0.78
- CEO John Patrick Mullin promised a detailed report explaining the crash and plans a token buyback
- Mullin proposed burning his personal allocation of 772,000 OM tokens to restore investor confidence
- The team denies any manipulation, stating their 300 million tokens remain locked until April 2027
- Critics questioned whether excessive token concentration made the market vulnerable to price swings
MANTRA’s token OM has staged a partial recovery, climbing approximately 30% after suffering a devastating 90% crash over the weekend. The token, which was trading above $6.30 on Sunday, plummeted to around $0.52 within hours, erasing over $5.5 billion in market capitalization.
At press time, OM is trading at approximately $0.78, according to data from both Coingecko and BeInCrypto. The token reached an intraday high of $0.91 on Tuesday, suggesting renewed buying interest despite ongoing market uncertainty.
The dramatic price collapse triggered widespread speculation across the crypto community, with some accusing the team of orchestrating a pump-and-dump scheme. MANTRA responded on social media that the crash resulted from large-scale forced liquidations, claiming these were unrelated to the project’s performance or internal operations.
No external hack or technical failure has been confirmed in connection with the price drop.
CEO Pledges Personal Token Burn and Buyback Program
John Patrick Mullin, MANTRA’s co-founder and CEO, has taken to social media to address the situation. “We are preparing a full breakdown of what happened starting early Monday morning in Asia. The data will tell the full story—on-chain and off-chain,” Mullin stated in a post.
In a move to restore investor confidence, Mullin announced plans to burn his personal allocation of 772,000 OM tokens, representing 0.25% of the team’s share. “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,” he wrote.
Mullin also promised a token buyback program and a reduction in overall supply once the post-mortem report is made public. No specific timeline or amount has been shared regarding these proposed actions.
The CEO emphasized that the team’s entire allocation of 300 million OM tokens (16.88% of the 1.78 billion total supply) remains locked under a vesting schedule until April 2027, with full vesting expected by October 2029.
“None of the OTC sales that we’ve had have actually been executed yet. So the tokens are all still locked,” Mullin explained in an interview.
The teams token allocation are actually vesting only starting in 2027, which is 30 months from mainnet launch (Oct. 24).
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. 🫡🕉️ https://t.co/ZQR1H5xAqF
— JP Mullin (🕉, 🏘️) (@jp_mullin888) April 15, 2025
Industry Reactions Mixed
Not everyone agrees with Mullin’s proposed token burn strategy. Crypto Banter founder Ran Neuner expressed concerns about the plan, suggesting it could harm long-term team motivation.
“This would be a mistake. We want teams that are highly incentivized. Burning the incentive may seem like a good gesture but it will hurt the team motivation long term,” Neuner cautioned.
In response, Mullin clarified that his plan would initially apply only to his personal token allocation, with the possibility of allocating tokens to a community-controlled dispersal mechanism.
Nomura’s Laser Digital, which has been an investor in MANTRA since 2024, released a statement refuting claims that early backers triggered the drop. “There have been no large withdrawals or coordinated sales from our side,” the company said, adding that its position in the project remains unchanged.
Previous Concerns Resurface
Following the crash, earlier concerns about MANTRA’s token supply distribution have resurfaced. Critics have questioned whether the team holds too much of the token’s float, potentially making the market more vulnerable during price swings.
Mullin directly addressed these allegations, stating,
“We do not manipulate the price, and we’ve been transparent about how the token is structured.”
The CEO also acknowledged that the MANTRA Chain Association has made over-the-counter transactions totaling $25-$30 million to fund business operations. However, he emphasized that these tokens remain locked with vesting periods starting later this month.
Jean Rausis, co-founder of SMARDEX, suggested the collapse highlights vulnerabilities in newer blockchain projects. “This is a reminder that projects launched with aggressive marketing and no history are often the most fragile when pressure hits,” he said.
Rausis compared MANTRA’s issues to Ethereum’s steadier track record.
“Ethereum isn’t moving fast in price, but it’s still the backbone of real development in this space. It’s not just about speed or hype—it’s about lasting value,” he noted.
