Recent movements in the Mantra (OM) market have drawn attention from crypto market participants as a major investor makes significant transfers, raising concerns about future price movements.
Large Transfers and Losses
Recently, crypto analyst The Data Nerd reported a transfer of 1.724 million OM tokens to Binance. This transfer comes with significant losses for the investor, who previously purchased 2.9 million OM for $18.7 million at an average price of $6.45 per token. If the investor decides to sell their remaining tokens, the losses will exceed $10 million at current token values.
Price Drops in Mantra
The trading chart for Mantra shows a drastic decline in prices. Over the past week, the token has dropped by 15.7%, with a year-over-year decrease of 34.3%. This situation is exacerbated by increased selling pressure driven by panic among token holders, after the price fell by more than 90% within just two weeks.
Token Burning Plan
In response to the severe price drop, Mantra's CEO announced a token burning program that aims to reduce the total supply by 300 million OM. This action is expected to help restore user confidence and enhance staking profitability.
The current situation in the Mantra market showcases significant price volatility and the activity of major players. The token burning program may be an important step in rebuilding investor confidence and stabilizing prices.
