The recent crisis in the MANTRA ecosystem has captured the attention of investors and analysts alike. MANTRA's decision to conduct a 300 million OM token burn has raised concerns about whether this move could reverse the consequences of a severe market collapse.
MANTRA, a platform focused on the tokenization of real-world assets (RWA), experienced a historic crash on April 13, 2025, which dramatically impacted its native token, OM. In just one hour, OM's value plummeted by more than 90%, wiping out approximately $5,5 billion in market capitalization. This collapse was one of the most resounding in recent cryptocurrency history, leaving significant impacts on both investor perception and confidence.
The problem was amplified by accusations of insider selling and market manipulation against the project, although the MANTRA team has denied these allegations, attributing the crash to forced liquidations on exchanges and inadequate liquidity management during periods of low activity. Extreme volatility and a volatile market environment with regulatory and economic pressures have further complicated the situation.
This event not only shook MANTRA, but also put the entire Real World Assets sector on alert, generating intense debate about the security, transparency, and sustainability of DeFi and blockchain platforms focused on this segment.
BE PART OF THE CRYPTO ECOSYSTEMJP Mullin and his strategy to regain confidence
But faced with this critical outlook, JP Mullin, CEO of MANTRA, has launched a bold strategy to try to restore confidence among investors and users of the ecosystem. Mullin announced who will personally burn 150 million OM tokens belonging to his allocation, a symbolic but powerful commitment that seeks to demonstrate accountability and transparency. Additionally, it is working with ecosystem partners to burn an additional 150 million tokens, bringing the total to 300 million, representing nearly 17% of the total OM supply.
This measure not only seeks to reduce the total supply to boost the token's value, but also to send a clear message to the community: that the project continues and that the management team is prepared to make concrete commitments in the face of adversity. JP Mullin has highlighted that these tokens were originally locked and subject to gradual release through 2027 and 2029, so burning them means giving up a significant portion of long-term incentives.
However, this strategy has generated mixed opinions. Some experts and community members believe it could negatively impact the development team's motivation, while others see it as a necessary step to clean up the project's image and pave the way for a sustainable recovery.
BUY MANTRA (OM) WITH CONFIDENCE AND SECURITYDetails of the 300 million token burn
Token burning is a process by which a specified amount of tokens are permanently destroyed, removing them from circulation and reducing the total available supply. In MANTRA's case, the 300 million OM tokens to be burned correspond to locked allocations for the team and key partners, which CEO JP Mullin is putting into play as a show of commitment.
This move, which has been in the works for several weeks and is expected to end on April 29, 2025, involves the irreversible burning of these tokens, reducing the total circulating supply from 1.82 billion to 1.67 billion OM. Furthermore, the reduction in locked tokens could also affect on-chain staking rewards, a fundamental mechanism for participation and security dynamics on the network.
Additionally, the MANTRA team has promoted the initiative for a decentralized vote within the DAO (decentralized autonomous organization) so that the community can decide whether to burn this entire allocation. This consultation seeks to strengthen governance and transparency, in line with the decentralization principles that underpin the project.
Details of the burn program and a potential token buyback plan are in the final stages and are expected to be communicated accurately soon to keep the community informed and engaged.
Supply reduction and effect on price
Token burning generally seeks to reduce the available supply, which, combined with constant or increasing demand, can put upward pressure on the asset's price. In the case of OM, reducing the total supply by burning 300 million tokens is a strategy intended to create value for investors who have remained loyal after the sharp decline.
However, its actual impact on price will depend on several additional factors, such as market sentiment, liquidity, and the team's ability to generate trust and constructive activity in the ecosystem. Token burning can be seen as an important symbolic gesture, but without solid backing in terms of development and adoption, the effect could be limited.
Currently, OM's price is hovering around $0,5, having declined from prices above $6 before the crisis. Technically, breaking through the $0,5 barrier requires strong signs of a recovery in buying momentum, as well as a sustained improvement in overall sentiment across the real-world asset sector.
Token burning must be accompanied by other measures such as increased transparency, community engagement, and strengthening strategic partnerships to ensure a real and lasting impact on price.
Chances of breaking through the $0,5 barrier
With the strategic burning of tokens and the implementation of governance and transparency measures, MANTRA aims for OM to begin regaining ground and surpass the psychological and technical level of $0,5. This recovery, however, is neither automatic nor guaranteed.
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Technical analysis suggests that, after the burn, immediate resistance for OM lies around $0,59, a level that, if broken, could open the door to trading at $0,71 or higher. Additional hurdles exist at levels near $0,89 and $0,99 before a return to $1 is possible.
For this to happen, the market must show sustained buying interest and renewed positive sentiment toward the RWA and DeFi sectors in general. Clear communication and results from the team, along with a stable regulatory environment, will help consolidate this recovery.
It's important for investors to consider the inherent volatility and resume positions cautiously, monitoring the project's progress and the execution of its recovery plan.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
