Mantra surges 60% after crash as CEO vows to burn team tokens
Search for the cause behind the Mantra crash
OM, the token powering the Mantra blockchain, surged 60% on Tuesday, rebounding after a dramatic collapse that wiped out over 90% of its value in just one day.
On Monday, OM crashed from around $6.30 to under $0.50, erasing approximately $5.5 billion in market cap, from nearly $6 billion to $530 million.
Despite Tuesday’s bounce, OM failed to reclaim the $1 mark, peaking at $0.92 and trading around $0.85 at the time of writing, with a market capitalization of $820 million.
OM price dynamics for 24 hours. Source: CoinMarketCap
The partial recovery followed an announcement from Mantra CEO John Patrick Mullin, who pledged to burn his personal team token allocation in order to restore investor confidence and fight speculation that the team profited from the token’s collapse.
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"Team token distribution doesn’t actually begin until 30 months after mainnet launch (October 24), so in 2027. I intend to burn all of my team tokens. When we revisit this, the community and investors can decide if I’ve earned them back," Mullin wrote on his X (formerly Twitter) page.
Mullin revealed that he currently holds 772,000 OM tokens, while the team's total allocation under the tokenomics plan is 300 million tokens.
Search for the cause behind the Mantra crash
According to CoinMarketCap, team tokens are locked until 2027, but last fall, allocations began to the Mantra Chain Association, which has now received approximately 38 million OM.
Reports indicate that over $70 million worth of OM tokens were transferred to exchanges via a single intermediary wallet just prior to the crash.
Mullin said the team is conducting an investigation and plans to release findings about the possible involvement of a centralized exchange. He also reiterated that Mantra’s tokenomics remain intact and verifiable through on-chain data.
As we wrote, blockchain developer MANTRA Chain, focused on tokenizing real-world assets (RWA), has launched a $108.9 million ecosystem fund to support growth and innovation in the RWA sector.
