- Mantra (OM) plans to execute a token buyback and burn, including a proposal to destroy 300 million locked team tokens, in an effort to restore investor confidence after a 90% price drop.
- The CEO, John Patrick Mullin, has also committed to burning his own tokens and revealed that forced sell-offs during low trading hours caused the token’s price crash, not the team’s actions.
Mantra’s price is rebounding after it fell almost 90% this week. The token is also planning to burn so as to boost investors confidence, and the CEO plans to add his own tokens to help with the upcoming burn and support the project.
The CEO, John Patrick Mullin, said the team is finalizing their plans on the token burn and also carrying out a buyback to help keep the price of the OM token steady after sharply losing almost $5 billion in value.
OM Token Crash and Mantra’s Recovery Plan
On April 13, the price of the token dropped more than 90% to $0.37, taking out almost $5 billion from its total market cap value. The price did a little bounce and went back above $1 but fell again. The CEO blamed the price crash on the forced sell-offs that happened during low trading hours on big exchanges, which the team later confirmed.
The team said they didn’t sell any tokens during the fall and that all team-owned OM tokens remain locked. Most sell trades involved older ERC-20 versions still in circulation.
To win back investors’ trust, Mantra is buying back and burning tokens, creating a live token dashboard, and working with big exchanges to make sure the token is more transparent. Mullin has also promised to burn his own tokens and suggested a community vote to destroy 300 million locked team tokens, which is 17% of the token total supply now worth $200 million, down from $1.8 billion before the crash.
Following the announcement, the price of Mantra (OM) is at $0.60. According to data from CoinGecko, OM has experienced a significant decline from its previous high of $6, causing it to drop out of the top 100 cryptocurrencies.
source: coingecko.com