Summary
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Mantra CEO Finalizing Token Burn and Buyback Programs: In response to the OM token’s 90% price crash and subsequent loss of investor confidence, Mantra CEO John Patrick Mullin announced that details for a token burn program are being finalized and a buyback program is already underway to mitigate the impact of the crash.
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Forced Liquidation Identified as Cause, Team Denies Sales: Mantra attributes the OM token collapse to forced liquidations during low-volume trading, reiterating that the team did not sell any tokens during the event, and confirms all team token allocations remain locked.
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Recovery Plan Includes Transparency and Community Engagement: To rebuild trust, Mantra is implementing a multifaceted recovery strategy involving a token burn and buyback, launching a live tokenomics dashboard, increasing exchange transparency, and considering a decentralized community vote on burning a significant portion of team-allocated tokens, with the CEO personally committing to burn his own tokens as well.
Mantra’s co-founder and Chief Executive Officer, John Patrick Mullin, announced that the project team is in the concluding stages of developing a token burn program and is actively implementing a buyback strategy.
These measures are intended to address the repercussions of the recent sharp devaluation of the OM token.
These initiatives are designed to regain investor confidence after the token’s price plummeted and allegations of market manipulation arose.
Token Burn Program Details Imminent
Mullin communicated via X on Friday that “The burn program details are in the final stages, and will be shared in the near future.
The buyback program also well underway. We are working around the clock for the Sherpas/OMies.”
This statement aims to reassure the Mantra community (‘Sherpas/OMies’) of the team’s ongoing efforts to resolve the situation.
OM Token’s Dramatic Price Drop and Partial Recovery
OM, the core token of the MANTRA ecosystem, experienced a precipitous price decline on April 13, with its value dropping over 90% to $0.37 within hours.
Following this extensive liquidation event, which erased approximately $5 billion from OM’s market capitalization, the token partially recovered to over $1, although it subsequently declined again.
After Mullin’s latest update, OM saw a surge, climbing as much as 14% on Friday, indicating market sensitivity to the CEO’s announcements.
Mantra Denies Team Token Sales During Collapse
Since the significant price event, the Mantra project team has consistently reiterated that they did not engage in any OM token sales during the period of its abrupt price crash.
This repeated assertion is an attempt to counter potential accusations of insider selling or team-related market manipulation contributing to the collapse.
Forced Liquidation Blamed for Price Drop
In initial statements following the event, CEO Mullin attributed the 90% drop in OM token value to aggressive forced liquidations occurring on centralized exchanges.
He positioned external market forces, rather than internal project actions, as the primary cause of the collapse.
Internal Investigation Confirms Liquidation Cause
Mantra’s official statement, released on April 16, affirmed the findings of an internal investigation.
The investigation reportedly validated that the forced liquidation of OM collateral during periods of low trading volume was the principal factor causing the dramatic price decrease.
This formal statement is an effort to provide transparency and substantiate the team’s initial explanations.
Recovery Plan Includes Buyback, Burn, and Transparency Measures
To rebuild community trust and mitigate the fallout from the event, Mantra has outlined a recovery strategy.
The strategy includes initiating a buyback and burn program to reduce the token supply and potentially support the price.
Additionally, they plan to launch a live tokenomics dashboard to enhance transparency regarding token distribution and economics.
Furthermore, they aim to collaborate with exchanges to improve market transparency and trading oversight for OM.
Also Read: MANTRA’s OM Token Price Plummets 90% Team Refutes Token Dump Allegations
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