By cryptoadmin MANTRA has launched an evaluation of the OM token’s sharp 92% decline on April thirteenth, which sparked vital concern among the many token’s neighborhood. The sudden drop, occurring round 18:28 UTC, caught token holders off guard and raised alarms as a consequence of its unprecedented nature. In response, the MANTRA workforce initiated an investigation to find out the underlying causes of the worth motion and to verify the present circulating provide of OM tokens. This effort goals to deal with neighborhood issues and reinforce the market’s future stability.
In response to the numerous and sudden downward worth motion skilled by the $OM token earlier this week, our workforce has compiled this fact-based evaluation. It addresses our neighborhood’s questions and descriptions measures to strengthen market resilience.
Our investigation… pic.twitter.com/v0HzaKiDHD— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 16, 2025
ERC-20 Token Circulation
Nevertheless, the report revealed that the MANTRA workforce was unable to make any gross sales in the course of the market combination shock. All Mainnet OM tokens allotted to the workforce and advisors stay locked. The losses had been related to the ERC-20 OM tokens, which had been absolutely distributed and in public circulation.
Particularly, the full provide of basic ERC-20 tokens was distributed amongst the customers, with 99.995% of tokens circulating inside greater than 123,000 wallets by 15 April. These tokens had been initiated in August 2020, and therefore, they’re absolutely liquid and tradeable, which implies that the buying and selling exercise was by exterior holders and broader market dynamics, and never by the MANTRA workforce.
In October 2024, with the launch of MANTRA Chain, a brand new provide of 888.88 million OM tokens was minted on the native blockchain. Of the full token provide, 77.5 million OM tokens are at the moment in circulation, representing a considerable share of the general provide.
Low Quantity Impression
The outcomes confirmed that many OM tokens had been transferred to the alternate as collateral at low buying and selling quantity. This led to pressured promoting and applications disposing of their holdings, which added additional stress on the token.
First, the pressured liquidations occurred in periods of low market turnover, thereby triggering a unfavorable suggestions loop and worth declines. The gaps between the alternate costs, particularly OKX and Binance costs, deepened the liquidation part.
Sooner or later, MANTRA intends to take motion to take care of this market and profit its token holders. These embrace an OM Token buyback plan, a provide burn technique, and John Patrick Mullin, MANTRA CEO, declaring plans to burn his workforce’s allocation.
Additional, the workforce intends to reinforce coordination with alternate companions to attain larger ranges of readability in buying and selling actions. To enhance the general transparency within the token market, a reside tokenomics bucket steadiness dashboard will even be applied.
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