The Mantra token recovery is underway as CEO John Mullin announces a bold plan to regain community trust following OM’s dramatic 90% price collapse. Mullin has pledged to burn 300 million OM tokens allocated to the team, representing 16.88% of the total supply, and utilize the $109 million Mantra Ecosystem Fund for potential token buybacks and burns. These measures aim to stabilize OM’s price and demonstrate transparency and commitment to the project’s long-term success.
Mantra CEO Takes Drastic Steps to Rebuild Trust
After the steep drop of the OM token, Mantra CEO John Mullin launched an aggressive campaign to restore faith in the project. He has declared his intention to burn 300 million OM tokens set aside for the team. Before the crash, these tokens, locked until 2027, were worth nearly $1.8 billion and made up almost 17% of the token’s total supply.
Mullin revealed his choice in a public post as a sign of commitment to Mantra. “I’ll destroy all my team tokens,” he said. “After the project recovers, the community may choose whether I or the team is deserving of any allocation.” This is an effort to remove various other issues and show accountability by Mullin.
The Aftermath of OM’s Crash
On April 13, the price of OM fell from more than $6 to under $0.52, causing a market crash of more than $5.5 billion. Although the token has bounced back a bit, doubts regarding transparency and possible insider action have made investors anxious.
There has been a lot of speculation about insider trading. Mullin stated that Mantra or any of its key investors offloaded tokens before the crash. He clarified that it was not a sale but a wallet-to-wallet transfer from wallets associated with partners such as Laser Digital and Shorooq Partners. Instead, Mullin blamed the sell-off of OSMO on liquidations on an unnamed exchange using OM as collateral.
Mixed Reactions to the Token Burn
Reactions have been mixed to Mullin’s suggested token burn. Many investors welcomed it as a thoughtful gesture and a move to restore confidence. On the other hand, some people say that taking away the team’s incentive may hinder their long-term commitment to the project.
To aid the recovery, Mantra is looking at buying back tokens through its $109 million Ecosystem Fund. This move seeks to stabilize the price of OM and support a recovery.
Promises of Increased Transparency
Mullin called the rumors that Mantra owns 90% of OM’s supply false and unsupported. He promised to be more transparent in the future, outlining the allocation of tokens and conducting a post-mortem.
The credibility of the OM project remains weak, despite the recovery of the market. Mullin’s dramatic action to give up the team’s tokens is just one element of a larger initiative to restore faith in the integrity of Mantra.
A Path Forward
Mullin’s actions highlight how difficult it is to keep investors’ trust during a crisis. Mantra aims to move forward from the tumultuous chapter by burning the team’s tokens and promising to be transparent.
Nonetheless, it will take more than gestures for recovery. Investors are closely monitoring the situation, hoping that Mantra can deliver on its commitments and bring stability back to the OM ecosystem. For the moment, Mullins’s efforts are a vital first step toward gaining back trust and showing the project’s resilience in hard times.
Conclusion
The collapse of OM served as a stark reminder of the extreme volatility and risks inherent in the cryptocurrency industry. John Mullin, the CEO of Mantra, is burning 300 million team tokens. He is doing this to take responsibility and regain investor trust.
Burning tokens and buying them back is good. However, Mantra’s success will be decided by how transparent they are in their communication and progress. As the project navigates through this tough patch, the community’s response and continued involvement will play a big role in shaping its future.
