tl;dr
Mantra CEO John Patrick Mullin has pledged to burn his allocation of OM tokens to restore investor confidence after the token's sharp collapse, which saw its value drop over 90% in one day, wiping out approximately $5.5 billion in market capitalization. Mullin holds about 772,000 OM tokens, less tha...
Mantra CEO John Patrick Mullin has pledged to burn his allocated OM tokens in an effort to rebuild investor trust following a sharp collapse of the token.
The OM token lost over 90% of its value in a single day, dropping from approximately $6.30 to under $0.50, wiping out about $5.5 billion in market capitalization due to abrupt liquidations by centralized exchanges during a low liquidity period.
Mullin, who holds roughly 772,000 OM tokens (less than 1% of the circulating supply), denied any insider selling and attributed the crash to external exchange activity. He also committed to investigating suspicious movements of over $70 million in OM tokens reportedly transferred to exchanges before the collapse.
Mantra is a layer 1 blockchain focused on tokenizing real-world assets while ensuring regulatory compliance. Recently, it obtained a Virtual Asset Service Provider license from Dubai’s Virtual Assets Regulatory Authority (VARA), positioning it for growth in regulated digital asset markets.
As part of his pledge, Mullin stated that the token burn would be subject to community approval on whether he can earn back the tokens once the project recovers.
The team is actively investigating the event and plans to publish details regarding the role of centralized exchanges in the collapse, while reiterating that Mantra’s tokenomics remain intact and verifiable through on-chain data.