Mantra, the blockchain initiative that focuses on the tokenization of real-world assets (RWA), is undergoing massive restructuring as its native token, OM, lost close to 90% of its value. This development came after the difficult market environment affected the financials of the company. This was announced by the CEO, John Patrick Mullin.
OM Token Collapse and Market Pressure
The challenges faced by Mantra have been largely triggered by the sharp decline in the price of its OM token, which was trading at a high of approximately $8.99 in early 2025, before dropping to less than $0.60, erasing close to 99% of its value.
The group had previously blamed the crash on systemic problems of aggressive leverage and liquidations on centralized exchanges that amplified the drop in prices during times of low liquidity. These conditions created what Mantra leadership labeled as “systemic risk” that was larger than the company itself.
Analysts and market commentators tend to refer to a lack of liquidity, cross-exchange liquidations, and sudden increases in deposits of large holdings of the OM token, whereas arguments between community members and investigators tend to create a degree of conflict between exchanges and project insiders.
Also Read: OKX Accuses Mantra Over OM Holdings Transparency in Ongoing Dispute
Operational Changes and Workforce Reductions
To ease the pressure on the financial situation, the CEO, Mullin, announced that Mantra would undergo a transformation into an optimized, more capital-efficient model. This would include cutting jobs in business development, marketing, human resources, and other such departments. This would enable the company to save capital.
Mullin took personal responsibility for the strategic actions taken before the restructuring, as evident from his apology to the employees. He understood the toughness of the situation.
Exchange Relations and Broader Industry Strain
This restructuring plan comes against the backdrop of tense relationships with certain cryptocurrency exchanges. For instance, in early December, Mullin called upon the holders of the OM token to move out of the OKX exchange due to incorrect data about the migration process, a move that the OKX exchange dismissed, citing market manipulation before the April crash.
These tensions bring to the fore the challenges in the relationship between protocol teams and trading venues, especially in cases involving significant price changes.
Also Read: MANTRA (OM) Signals a Potential Upswing as Technicals Point Toward $0.34
