John Mullin, CEO of blockchain challenge Mantra, has pledged to burn the workforce’s complete token allocation in a bid to regain the neighborhood’s belief following the sharp collapse of the Mantra (OM) token on April 13.
In a statement posted to X on April 16, Mullin mentioned, “I’m planning to burn all of my workforce tokens, and after we flip it round, the neighborhood and traders can determine if I’ve earned it again.”
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Mantra Reserved 300 Million OM Tokens for Group and Core Contributors
Mantra had beforehand allotted 300 million OM tokens—roughly 16.88% of its complete provide of almost 1.78 billion—for its workforce and core contributors.
These tokens, valued at roughly $236 million based mostly on OM’s present value of $0.78, have been initially locked and scheduled for launch between April 2027 and October 2029. Previous to the crash, their worth was estimated at $1.89 billion.
OM’s value plummeted from round $6.30 to as little as $0.52, wiping over $5.5 billion in market worth, in accordance with CoinGecko.
Whereas some locally praised Mullin’s transfer as a daring gesture of accountability, others expressed concern it would weaken the workforce’s long-term incentive to construct the real-world asset tokenization platform.
Crypto Banter founder Ran Neuner criticized the choice, stating, “Burning the motivation might appear to be a very good gesture however it’ll harm the workforce motivation long run.”
Mullin has instructed {that a} decentralized neighborhood vote might in the end determine the destiny of the 300 million workforce tokens.
This might be a mistake. We wish groups which are extremely incentivized. Burning the motivation might appear to be a very good gesture however it’ll harm the workforce motivation long run.
My suggestion;
Simply hold constructing.
— Ran Neuner (@cryptomanran) April 15, 2025
Within the aftermath of the crash, Mullin mentioned the Mantra workforce is already engaged on restoration plans, together with using its $109 million Mantra Ecosystem Fund for potential OM buybacks and burns.
Mantra has strongly denied allegations of insider buying and selling or holding 90% of OM’s provide. The challenge attributed the crash to “reckless liquidations,” not any actions taken by the workforce.
Exchanges OKX and Binance, the place most OM buying and selling occurred previous to the collapse, additionally denied wrongdoing. They pointed to an October tokenomics change and excessive volatility because the causes behind the large cross-exchange liquidations that occurred on April 13.
Binance is conscious that $OM, the native token of MANTRA, has skilled important value volatilities. Our preliminary findings point out that the developments over the previous day are a results of cross-exchange liquidations.
Since October of final 12 months, Binance has applied numerous…
— Binance Buyer Help (@BinanceHelpDesk) April 14, 2025
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Mantra Collapse Sparks New Fears Over DeFi Hype and Transparency
The sudden collapse of Mantra (OM) on April 13, which erased 90% of its worth and worn out $6 billion in market cap, has reignited debates over belief, governance, and sustainability within the decentralized finance (DeFi) house.
The crash occurred with none confirmed hacks or safety breaches, shaking confidence in hype-driven DeFi initiatives.
Mantra, as soon as a top-five Actual World Asset (RWA) protocol with bold targets to tokenize real-world belongings, noticed its token fall from over $6 to $0.40 in a single day.
“Transparency is a phrase that may get thrown round like glitter – significantly on this house. However I’ll use it. We’ll do every thing in our energy to convey correct, well timed info as quickly as we have now it and confirm it. This can be a duty to our neighborhood we… https://t.co/B3pJyPaOwm
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 15, 2025
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Key Takeaways
-
Mantra CEO John Mullin pledged to burn the workforce’s 300 million OM tokens to regain neighborhood belief after OM’s sudden collapse. -
The token crash worn out over $5.5 billion in worth, elevating considerations about hype-driven DeFi initiatives and governance transparency. -
Mantra denies insider buying and selling allegations and plans restoration efforts, together with potential buybacks utilizing its $109 million ecosystem fund.
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