MANTRA CEO, JP Mullin, Is Burning 150 Million OM Tokens from His Own Allocation

MANTRA CEO, JP Mullin, is burning 150 million OM tokens from his own allocation and engaging other ecosystem partners to burn an additional 150 million tokens. This 300 million OM token burn aims to restore investor trust in the project and stabilize the altcoin's price dynamics.

MANTRA CEO JP Mullin is burning 150 million OM tokens from his own allocation and engaging other ecosystem partners to burn an additional 150 million tokens. Together, this 300 million OM token burn aims to restore investor trust in the project and stabilize the altcoin’s price dynamics.

The move follows one of the most dramatic crashes in recent crypto history, as OM lost over 90% of its value in a single hour on April 13. The collapse erased more than $5.5 billion in market cap and triggered widespread accusations of insider activity and manipulation within the Real-World Assets (RWA) sector.

As one of the biggest players in the RWA sector, Mantra, the parent company of the OM token, has been subject to intense scrutiny following the rapid surge and subsequent crash of its token earlier this year.

After hitting lows of $0.013 in March, OM soared to highs of over $6 in April, pushing its fully diluted valuation to $11 billion. However, the gains were quickly erased as the token plummeted by 90% in a single hour on April 13, reportedly triggered by a $40 million token deposit into OKX by a wallet allegedly linked to the team.

The panic among investors stemmed from rumors of undisclosed OTC deals, delayed airdrops, and excessive token supply concentration, leading to mass liquidations across exchanges. While Mullin, the co-founder, has denied any wrongdoing and blamed centralized exchanges for forced closures, investors and analysts raised concerns about potential manipulation by market makers and CEXs, drawing comparisons to past collapses like Terra LUNA.

In an effort to rebuild trust, Mullin has announced the permanent burn of his 150 million OM team allocation. The tokens, originally staked at mainnet launch in October 2024, are now being unbonded and will be fully burned by April 29, reducing OM’s total supply from 1.82 billion to 1.67 billion.

This move also lowers the network’s staked amount by 150 million tokens, which could impact on-chain staking APR.

Additionally, MANTRA is in talks with partners to implement a second 150 million OM burn, potentially cutting the total supply by 300 million tokens.

Despite MANTRA’s ongoing token burn efforts, it’s still uncertain whether the move will be enough to fully restore investor confidence in OM.

From a technical standpoint, if momentum begins to recover, OM could test the immediate resistance at $0.59. A successful breakout at that level may pave the way for further gains toward $0.71, with additional key hurdles at $0.89 and $0.997 standing between the token and a return to the psychologically important $1 mark.

However, reclaiming these levels will likely require sustained buying interest and broader sentiment recovery across the Real-World Assets (RWA) sector.

On the downside, if the token burn fails to shift sentiment or if selling pressure continues, OM risks resuming its decline.

The first key support lies at $0.51, and a breakdown below that level could send the price further down to $0.469.

Given the scale of the recent crash and the lingering distrust among investors, the path to recovery remains fragile—OM now sits at a critical crossroads between a potential rebound and further erosion of its market value.