- CEO Mullin to burn 150 million OM tokens worth $82M to restore trust.
- MANTRA token burn to reduce OM supply by 8.5%.
- Token burn aims to stabilize the OM price and increase staking APR.
MANTRA CEO announced plans to burn 300 million OM tokens to stabilize market price after the recent massive price crash. OM token prices experienced over 90% decline on April 13 which eliminated more than $5 billion in market capitalization.
CEO John Patrick Mullin intends to burn 150 million of his personal OM tokens to prove his dedication to the project and reestablish trust with investors.
The token burn which is set to be completed on April 29, will reduce the total token supply from 1.82 billion OM tokens to 1.67 billion OM tokens . The decision comes after a massive token price decline due to speculations of insider trading and the suspicious $40 million deposit linked to the MANTRA team.The events caused widespread panic and mass liquidations which raised doubts about the project’s future.
MANTRA Token Burn To Stabilize Price and Restore Trust
Mullin stressed that the MANTRA team did not make any sales activities during the crash. The CEO clarified that the crash was caused by “reckless liquidations” from market fluctuations rather than internal manipulation.
The token burn is intended to boost staking and reduce the staking ratio from 31.47% to 25.30%. However, time will tell how effective the token burn initiative is to restore market trust.
The OM token experienced a brief increase in price after the token burn announcement. However, the price has decreased by 2.7% in the last 24 hours because investors are uncertain about future market conditions.
Price Action
The MANTRA team is in talks with various partners to increase the token burn to 300 million OM tokens.
The token burn could substantially decrease OM token’s circulating supply which could stabilize its price. However, the market sentiment remains uncertain despite the burn initiative. The OM token must break the $0.59 resistance level to surge to $0.71.
MANTRA faces financial difficulties because investors are uncertain about the future of the project. A breakout above the crucial resistance levels could indicate potential growth but additional market turbulence could lead to further declines.
The market continues to monitor whether the token burn will undo the effects of the market crash and recover investor trust in the MANTRA network.