In April 2025, MANTRA co-founder John Patrick Mullin announced the burning of 150 million OM tokens in response to the sharp decline in token price. This measure aims to restore market trust and stabilize its value.
Reasons and Consequences of OM Price Drop
MANTRA faced a significant decline in the OM token price, which dropped by 91.63% in 2025. This was triggered by reckless position closures on centralized exchanges, severely affecting liquidity. In response, the MANTRA team improved governance and transparency to restore confidence in their staking model and address market concerns.
Community Reaction to the Token's Price Decrease
The OM token price fell from $6 to $0.32, provoking bearish sentiment within the community. Predictions suggest a slight increase to $0.316924 by the end of June, reflecting cautious optimism among investors. Historically oversold conditions indicate potential positive movement. Increasing trade volumes and a short-term bullish trend may lead to a breakout towards $0.45-$0.48 if resistance is surpassed.
Comparison with Other Token Burning Strategies
Token burns have been utilized in the past for market recoveries. MANTRA's strategy resembles previous efforts, such as Binance's quarterly burns, which have historically bolstered community and market sentiment. Experts see oversold conditions as opportunities for recovery and emphasize the importance of closely monitoring market signs.
The actions taken by MANTRA in response to the severe price drop of the OM token reflect the project's commitment to restoring community trust and improving market conditions. Comparisons with previous token burn strategies indicate that such actions can positively impact investor sentiment and aid in price recovery.
