The Mantra (OM) Token Price Has Surged After Founder JP Mullin Announced Plans for a Massive Token Burn

The OM token, which had experienced a major price drop over recent weeks, jumped from a low of $0.5115 to as high as $0.8706 following Mullin's statement on X.

Mantra (OM) token price surged on Sunday after founder JP Mullin announced plans for a massive token burn.

Mullin clarified that he intends to burn his personal team token allocation and implement a “comprehensive burn program for other parts of the OM supply.”

OM Pumps After Founder’s Burn Announcement

The OM token, which had experienced a major price drop over recent weeks, soared from a low of $0.5115 to as high as $0.8706 following Mullin’s statement on X.

This announcement comes as OM has seen price drops of 87.0% over the past week. CoinGape has released a Mantra OM price prediction for April 2025, which could give you an idea of how the token can perform this month.

Mantra has initially shelved 300 million OM tokens for its team and core contributors. This accounts for 16.88% of the token’s nearly 1.78 billion total supply. These tokens are currently locked and were scheduled for a phased release between April 2027 and October 2029.

To be 100% clear, I am stating that I am burning MY team tokens, and we will create a comprehensive burn program for other parts of the OM supply.

The planned burn could possibly take out a huge quantity of these tokens from the market for good. A decentralized vote could decide if all 300 million team token issuance needs to be burnt, as proposed by Mullin.

The announcement has been followed by various reactions from the Mantra community. Some members of the community, such as 'Anurag Gera,' believed that Mullin’s commitment was a positive development for token valuation. However, others had concerns about having long-term issues with the move.

Crypto Banter founder Ran Neuner warned against the move, stating that burning the incentive may seem like a good gesture but it will hurt the team motivation long term.

Mantra Refutes Allegations Following Price Collapse

Mullin’s token burn announcement comes at a difficult time for the project. The company has vehemently denied reports by BlockFi that it holds 90% of OM token.

It has also rejected allegations of market manipulation and insider trading submitted by some community members on Telegram.

Mantra explained that the latest price drop of OM occurred due to “reckless liquidations” and not due to anything the team had done. The recent history of the token indicates the size of this drop, with the charts from CoinMarketCap reflecting a nearly 90% decline in value over the past month.

Major cryptocurrency exchanges OKX and Binance both experienced major OM trading activity immediately before the token’s collapse. However, both platforms have denied any wrongdoing in relation to the price crash. Binance mentioned that the crash was mainly due to cross-exchange liquidations.

They attributed the collapse to tokenomics adjustments that were made during October 2024 and abnormal market volatility that ultimately led to high-volume cross-exchange liquidations on April 13.