The MANTRA team announced the burn of 150 million OM tokens to demonstrate their commitment to the project and restore investor trust after a significant price drop.
Burning of OM Tokens and Its Objectives
Founder JP Mullin announced he would burn all of his OM tokens, worth approximately $82 million. The goal of this move is to show a long-term commitment to developing the Layer 1 blockchain associated with real-world assets.
Context of Price Crash and Its Consequences
This announcement follows a crash on April 13, when the OM token lost over 90% of its value within hours. The billions in lost market capitalization raised questions about the project's stability. The MANTRA team blamed 'reckless liquidations' for the rapid sell-off.
Transparency and Accountability in Project Management
In response to the situation, JP Mullin assured investors that there were no OM token sales from the team during the period of market distress. The company expects centralized exchange partners to provide more information to clarify what happened.
This token burn represents not only a symbolic gesture but also a strategic move for managing token supply and strengthening trust in the MANTRA project.
