The entire crypto space is worried about the collapse of the Mantra OM token

The entire crypto space is worried about the collapse of the Mantra OM token, which recorded a massive plunge of 95% in price. However

The crypto space has been buzzing with the collapse of Mantra OM (OM) token, which saw a 95% price plunge. As the community members put up various allegations of Insider selling, Rug Pull, Big scam, and Lack of Transparency from the Mantra team, the CEO, John Mullin, decided to speak up.

In a recent AMA session, Mullin addressed the rumors head-on. He firmly denied claims that early investors like Laser Digital dumped their tokens.

"We never sold any tokens during the price crash. Our goal was to build the ecosystem, not cash out early," he stated.

Moreover, Mullin refuted the assertion that the Mantra team controls 90% of the token supply. Calling the accusations “baseless,” Mullin pointed to a transparency report released by the team. The report, he says, shows all wallet holdings and aims to give the community a clear look into Mantra’s token management.

"The facts speak for themselves. We invite everyone to review the report and form their own conclusions," Mullin added.

According to Mullin, the crash wasn’t due to any inside scam, but rather a chain reaction of exchange liquidations. Some traders had used OM tokens as collateral for loans. When the price dropped, those tokens were automatically sold off by the exchange to cover losses, causing even more price drops.

"This feedback loop led to a vicious cycle that ultimately crashed the token price," he explained.

However, Mullin highlighted that the Mantra team is working tirelessly to recover the OM token, adding that it’s their number one goal.

To support this, Mantra is looking at two major steps; Mullin said they are implementing a buyback option to increase demand. But the team may start buying OM tokens from the market using their own funds to increase the demand.

One of the more promising updates is that Mantra has a $109 million ecosystem fund. This money is now being focused on reviving the project and supporting the OM token. It shows a strong commitment to bounce back stronger.

Since the crash, OM has started to recover slightly, now trading around $0.60 with a market cap of $585 million. While the road ahead may be tough, the Mantra team says they’re not backing down.