KEY TAKEAWAYS
- MANTRA is investigating a 92% drop in the OM token price, emphasizing transparency and factual analysis.
- The team confirmed no sales during the market distress and is committed to understanding the price anomaly.
- Significant OM tokens were moved to exchanges as collateral, leading to forced closures and selling pressure.
- MANTRA plans a buyback and supply burn program to support the OM token, with CEO John Patrick Mullin burning his team allocation.
The MANTRA team has announced a comprehensive investigation into the unexpected and significant decline in the price of its OM token, which fell by 92% within an hour on April 13. This event has raised concerns among the community, prompting the team to address these issues with transparency and factual analysis.
According to MANTRA, no sales were made by the team during this period of market distress. The team remains fully operational and committed to understanding the factors that led to this market anomaly. The investigation aims to identify key contributors to the rapid price movement and to provide verifiable data on the current circulating supply of OM tokens.
OM Circulating Supply and Market Dynamics
The OM token supply is divided between legacy ERC-20 tokens and new MANTRA Chain Mainnet tokens. The original OM token, launched in August 2020, has a fixed total supply of 888.88 million, with 99.99% in public circulation. These tokens are fully liquid and tradable, with market activity driven by holders and external trading dynamics.
In October 2024, MANTRA Chain introduced an additional 888.88 million OM coins. Currently, 77.5 million of these are in circulation. The total OM supply stands at 1.81 billion tokens, with 52.2% circulating. The incident primarily involved ERC-20 OM tokens, which represent nearly the entire liquid market.
Market Conditions and Planned Actions
MANTRA has identified that significant amounts of OM tokens were moved onto exchanges as collateral, leading to forced position closures during low trading volume hours. This created a self-reinforcing cycle of selling pressure, exacerbating the price decline. The team is confident that further information from exchange partners will clarify these events.
In response, MANTRA plans to implement an OM Token support plan, including a buyback and supply burn program. CEO John Patrick Mullin has committed to burning his team allocation. The team also invites centralized exchange partners to collaborate on providing more clarity on trading activities during this time. A dashboard with live balances of tokenomics buckets will be released for additional market transparency.
For more details, the full statement can be accessed here.
Why This Matters: Impact, Industry Trends & Expert Insights
The MANTRA team is investigating a dramatic 92% drop in the price of its OM token, which occurred suddenly amid broader market turmoil. This event has raised significant concerns within the community and prompted a thorough examination of the factors involved.
A Coindesk report highlights the ongoing volatility in the cryptocurrency market, influenced by macroeconomic factors and regulatory developments. This aligns with the recent OM token crash, as the market remains sensitive to external economic pressures and investor sentiment.
As per insights from TheStreet, the OM token’s price drop was attributed to forced liquidations and insider-held tokens being moved to exchanges. This supports the understanding of the crash as a result of market structure issues rather than systemic protocol failures.
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