The crypto space is no stranger to price swings, but even in this notoriously volatile market, the drama of a 90% price drop is seemingly unparalleled. Most recently, the MANTRA (OM) project — centering on Real World Assets (RWA) — experienced a catastrophic unwinding. At what cost – it obliterated nearly $6 billion in erstwhile market capitalization in a few minutes. Led by founder and CEO, John Mullin, the MANTRA initiative has already begun implementing a token burn strategy. This unprecedented action is designed to revive the formerly beleaguered project and win back confidence from paltry investor interest. BlockchainShock.com will further examine how effective MANTRA’s token burn is after the 90% price drop that recently occurred. They will also explore topics such as centralization, token concentration, and governance while providing a sober outlook on the potential for recovery vs. the potential for continued collapse.
Mullin has already started unstaking his allocation of 150 million OM ahead of burning the full amount. This step is the clearest indication yet that there is strong confidence about the project’s eventual future. We’re hoping to make each remaining token more valuable by reducing the total supply of them. The team has plans to work with ecosystem partners to burn an extra 150 million OM. This action would decrease the total supply to approximately 1.52 billion. Whether this strategy can effectively address the deep-seated issues plaguing the project remains to be seen. It represents a bold attempt to reverse the damage.
Mantra Team's Efforts to Collaborate with Ecosystem Partners for Token Burn
The MANTRA team is currently in talks with various ecosystem partners for a beneficial token burn. This commitment is a major step to restore the project following its tragic 90% cost collapse. This collaborative approach aims to reduce the total supply of OM tokens, potentially increasing the value of the remaining tokens and restoring investor confidence.
Initiating the Burn of 150 Million OM Crypto Tokens
John Mullin believes in putting the community first, by burning team tokens. He even started this process by unstaking 150 million from the Team and Core Contributor bucket. This is big news indeed. It addresses issues of centralized token ownership directly, a practice that often leads to market manipulation and breaks investor confidence. The disappointment was palpable when the team recently wrote in their blog this week to confirm that the OM crypto tokens have been unstaked. They provided three individual transaction hashes to confirm their routine. Providing this level of transparency is essential to building trust and showing that an organization truly has the best interest of the community at heart.
Impact of Collaboration on the Community
The success of the token burn strategy will largely depend on how many of their ecosystem partners are open to adopting it. The team is guided by one simple aim. If they are able to convince their ecosystem partners and key stakeholders to burn another 150 million OM, the supply will fall to around 1.52 billion. All that diminished supply could help skyrocket the token’s price. Its success is as much dependent on wider market conditions and investor sentiment. The burn campaign is an effort to re-establish that lost trust and show a long-term commitment. Mullin has revealed details on an as-yet-undisclosed OM token buyback and supply burn program. Taken together, this holistic approach shows a good faith attempt to start fixing the root causes of the problems and reclaim the credibility of this project.
Recent Market Performance of OM Token
The recent market performance of the OM token has been positively wild. On April 13, 2025, a catastrophic 90% crash ensued, erasing most of its market cap nearly entirely. This unforeseen event triggered grave doubts about the commercial viability of the project in the long term. During the recent NFT boom, while the token burn announcement has been an efficient short term catalyst, the overall trajectory is very much in question.
Recovery of OM Token by 10% After Recent Flash Crash
During this initial period after the crash, the OM token pumped 4%. This exact spike took place after their token burn was announced. Perhaps most tellingly, Vanguard found that the market responded favorably to the news, interpreting it as a possible harbinger of improved financial conditions. This was a brief rise as the price of the token quickly entered a downward trend. This wild ride highlights the fundamental fears about the project and its difficulty in winning back investor confidence. The scale of the damage is made clear by the token’s market capitalization, which has tanked from $11 billion to just $558 million.
Analysis of Market Trends Following the Price Drop
The recent performance of the OM token has led to comparisons with past catastrophes, including Terra LUNA. This ambitious project ultimately fizzled, even after numerous efforts to revive it. Some market observers are not buying the token burn. They question whether this was just a showboat political move or a serious strategic effort to change the enterprise. Even with the token burn announcement in place, the token’s price behavior continues to be highly erratic. The lingering market trends show no sign of persistent upward surge, showing consistent fight from investors to keep the bull run at bay. The long-term success of the token burn strategy will depend on its effectiveness to address centralized token concentration and governance concerns. That’s not enough—the agreement needs to restore investor confidence and clarity and demonstrate a clear way forward for the project.
Here are the potential pros and cons of the MANTRA's token burn strategy:
- Pros:
- Reduced token supply, potentially increasing the value of remaining tokens.
- Signaling of commitment from the team to the project's future.
- Increased transparency through verified transaction hashes.
- Potential for restoring investor confidence.
- Cons:
- May not address the underlying issues of centralized token concentration and governance.
- Success hinges on the willingness of ecosystem partners to participate.
- Market conditions and investor sentiment may limit its effectiveness.
- Risk of being seen as a merely symbolic gesture if broader issues are not addressed.
Here are some actionable insights:
- Assess the team's commitment: Look beyond the token burn and evaluate the team's long-term vision and strategy for MANTRA.
- Evaluate the project's fundamentals: Determine whether the project's underlying technology and use case are still viable.
- Monitor market sentiment: Keep a close eye on how the market reacts to the token burn and other announcements from the team.
- Diversify your portfolio: Avoid putting all your eggs in one basket, especially in high-risk projects like MANTRA.
The MANTRA (OM) 90% crash is an unfortunate, yet powerful example of the dangers you face when investing in cryptocurrencies. The token burn strategy takes a drastic step to try and prevent the project from completely imploding. Its success is far from certain. Simply put, investors should proceed with caution and carefully do their homework before acting on anything.
