On Sunday evening, the value of the Mantra DAO (OM) cryptocurrency collapsed 90 percent in just over an hour

This happened without developers' wallets being hacked, large stockpiles of digital assets being leaked by insiders, or other unexpected scenarios

The price of Mantra DAO (OM) has collapsed 90 percent on Sunday evening over just over an hour. This happened without developers' wallets being hacked, large stockpiles of digital assets being leaked by insiders, or other unexpected scenarios.

According to the project's representatives, the collapse was caused by a large-scale liquidation of traders' positions on centralized cryptocurrency exchanges. Now the management is preparing a detailed report on the situation and at the same time promises to burn its own crypto assets.

Mantra exchange rate today

At the time of writing, OM is valued at $0.77 after a 6% price decrease in the last 24 hours.

During the weekend collapse, the price of OM fell as low as $0.37. While the price has more than doubled compared to this bottom, most OM holders are still deep in the red as OM is displaying a massive 87% drawdown on a weekly basis.

Comments from the project's co-founder John Patrick Mullin restored some confidence in the OM markets, although the damage from the price crash will be hard to undo.

Yesterday, Mullin once again commented on the situation and shared new plans of the team to restore the trust of users. In particular, he promised to introduce a token buyback program by the company's representatives, which should create a constant pressure of buyers.

"A quick note to say how much I appreciate all the support the MANTRA team has received in the past 36+ hours," said Mullin in a recent post. "The support and kind words have come from many sources - from partners, investors, friends, and from the wider Web3 community. Thank you."

However, Mullin also shared specifics. In particular, he promised to publish a detailed report of what happened in the OM market on Sunday. He announced that a post-mortem report will be published within the next 24 hours and expressed confidance that the facts, supported by both on-chain and off-chain data, will validate their position.

Following the release of the report, the team plans to share further details about an OM token buyback program and a token supply burn initiative, which are measures aimed at restoring market trust and reaffirming their long-term commitment to the OM token and the MANTRA ecosystem.

"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," added Mullin.

The bottom line

The Mantra team is facing a serious challenge, but their public promises of a detailed report as well as buyback and token burning initiatives indicate a willingness to take responsibility and regain trust. If the recovery steps are successful, OM still has a chance to prove its viability. However, for now, it is difficult to believe in the token's growth to its previous heights.