In a dramatic bid to salvage trust, Mantra CEO John Mullin vows to torch $236 million in team-held tokens after the OM token’s catastrophic 90% crash on April 13. The move has split the crypto community, sparking debates over accountability, motivation, and the future of real-world asset tokenisation.
Burning 300 Million Tokens to Win Back Trust
John Mullin stunned investors on April 16 by pledging to burn all 300 million OM tokens reserved for Mantra’s team, a stash worth $236 million post-crash. Originally locked until 2027, these tokens represented 16.88% of OM’s 1.78 billion supply. “When we turn this around, the community can decide if I’ve earned back their faith,” Mullin declared on X.
Meanwhile, critics like Crypto Banter’s Ran Neuner warn destroying incentives could backfire: “Burning tokens might look noble, but it risks demoralising the team long-term.” Mullin countered by proposing a decentralised vote to settle the burn’s fate.
The Collapse: How OM Plunged From $6.30 to $0.52 in Hours
Chaos erupted on April 13 as OM nosedived 90%, vaporising $5.5 billion in value. Trading volumes exploded to $1.45 billion, while liquidity shrivelled from $290 million to $473,000. Exchanges like OKX and Binance faced scrutiny, though both blamed the crash on October 2024 tokenomics changes and “reckless liquidations.”
However, blockchain sleuths flagged 43.6 million OM tokens ($227 million) moving to exchanges pre-crash, including wallets tied to investor Laser Digital. Mullin denied insider sales, insisting team tokens remain locked. Yet rumours swirled; some accused Mantra of orchestrating a pump-and-dump, pointing to Telegram channel shutdowns mid-crisis.
Community Split
While some investors cheered Mullin’s pledge, OM’s 30% rebound to $0.80 hinted at cautious optimism. “This burn could reignite OM’s value,” one X user posted. On the other hand, skeptics likened the crash to Terra’s 2022 collapse, demanding stricter compliance in real-world asset projects
Notably, influencer Coffeezilla alleged Mantra sold $25-$45 million in off-market deals at steep discounts, claims Mullin dismissed as “fiction.” Meanwhile, industry leaders urged transparency. “Scrutinise on-chain data,” OKX CEO Star Xu urged, calling the crash a “black eye” for crypto.
Mantra’s Recovery Plan: Buybacks, Burns, and a $109 Million Lifeline
Beyond the token burn, Mullin revealed plans to deploy Mantra’s $109 million Ecosystem Fund for buybacks and additional burns. “We’re exploring every option to stabilise OM,” he said, though specifics remain vague. A post-mortem report is also promised to dissect the crash’s roots.
Additionally, Mullin stressed OM’s tokenomics stay intact, with team and investor tokens locked until 2027. He denied controlling 90% of OM’s supply, clarifying Binance holds chunks for staking programs.
A Wake-Up Call for Real-World Asset Tokenisation
The crash exposed fragility in RWA projects, highlighting low liquidity and exchange reliance. Kronos Research’s Hank Huang called it a “reality check,” urging tighter safeguards. Yet Mantra’s regulatory wins, like a Dubai VASP license and partnerships with Google Cloud and DAMAC Group, offer hope.
Still, comparisons to Terra loom. “Without transparency, trust evaporates,” warned analyst ZachXBT. As Mantra’s Hongbai testnet aims to bridge Middle Eastern and Asian markets, the path forward hinges on restoring credibility.
What’s Next? A Community Vote and Uphill Battle
As of April 16, OM hovers near $0.80, a fragile rebound. Mullin’s burn proposal awaits a community vote, while buyback details linger unresolved. The team’s next steps could redefine Mantra’s future, balancing bold gestures with sustainable growth.
For now, investors watch closely. “Actions matter more than promises,” tweeted crypto trader Alex Becker. Whether Mantra rises from the ashes or joins crypto’s graveyard depends on delivering results, not just symbolic burns.
Stay updated on this developing story as Mantra navigates one of crypto’s most turbulent recoveries.
