Mantra CEO Pledges to Burn $236 Million to Protect the Community After OM Token Crash!

Jakarta, Pintu News – Shocking news came from the cryptocurrency world. John Mullin, CEO of the Mantra blockchain project, made a dramatic decision after the Mantra token plummeted to a market value loss of more than $5.5 billion.

In an extreme move to restore the community’s trust, Mullin announced that he would burn all of the team’s $236 million or IDR 3.9 trillion worth of tokens.

This action sparked widespread debate as to whether it was a sign of true accountability or whether it increased the risk of losing team spirit to build the project going forward.

The Great Tragedy: OM Token Collapses Like Terra Luna

On April 13, 2025, the price of the OM token fell from $6.30 (IDR 106,035) to just $0.52 (IDR 8,754) in a short period of time. As a result, more than $5.5 billion (IDR 92.5 trillion) of market value vanished instantly.

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Before the crash, the team’s token allocation of 300 million OM, which represented about 17% of the total supply, was worth nearly $1.9 billion (IDR 32 trillion). After the incident, the value dropped drastically to around $236 million (Rp3.9 trillion).

Mullin announced on the X platform that he plans to burn all the tokens allocated to the team, which were originally scheduled for gradual vesting from 2027 to 2029.

He also emphasized that in the future, the community will decide through voting whether he deserves compensation for his hard work.

Community Reaction: Salute or Skeptical?

Mullin’s actions sparked mixed reactions in the crypto community. Many applauded the Mantra CEO’s courage and commitment to transparency.

However, there are also those who question whether, without token incentives, the team’s motivation will remain strong to rebuild the project? Ran Neuner of Crypto Banter reminds us that financial incentives are the main driving force in DeFi projects.

Mantra also responded to rumors that they control 90% of OM supply, vehemently denying any involvement in market manipulation. They claimed that the crash was due to “reckless liquidation” and changes in tokenomics in the past, not due to exploitation or insider trading.

Recovery Strategy: Buybacks and Transparency

Mullin isn’t just relying on token burns to restore trust. Mantra plans to use $109 million (Rp1.8 trillion) from the Ecosystem Fund to conduct OM token buybacks as well as potential additional burns.

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This move is expected to stabilize token prices in the market and reduce selling pressure.

As part of its transparency commitment, Mantra also promised to release a detailed post-mortem report on the causes of the OM token’s collapse. Their focus is now on rebuilding the foundation of the project with stronger principles of openness and governance.

Overall, this tragic incident serves as an important lesson for the DeFi world, particularly in terms of the importance of robust tokenomics design and honest communication to the community.

If Mullin and the team manage to keep their promise to rebuild trust through concrete actions, Mantra may not only survive this storm, but also become an example of how crypto projects can emerge stronger after a major crisis.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinfomania. Mantra CEO Pledges to Burn Team Tokens After OM Token’s $5.5B Meltdown. Accessed April 17, 2025.
• Coinpedia. Mantra CEO Plans to Burn Team’s Tokens After $5.5B Crash to Rebuild Community Trust. Accessed April 17, 2025.