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The entire crypto space is worried about the collapse of the Mantra OM token, which recorded a massive plunge of 95% in price. However, everyone in the crypto community is putting up the various allegations of Insider selling, Rug Pull, Big scam, and Lack of Transparency from the Mantra team.
To clear the community concerns, Mantra’s CEO, John Mullin, spoke up and shared how they plan to address these issues and brought a token recovery plan.
Let’s take a look at what he said.
No Insider Selling, Says Mullin
In a recent AMA session, Mullin addressed the rumors head-on. He firmly denied claims that early investors like Laser Digital dumped their tokens before the price crash. He also shut down the idea that the Mantra team controls 90% of the token’s supply.
Calling the accusations “baseless,” Mullin pointed to a transparency report released by the team. The report, he says, shows all wallet holdings and aims to give the community a clear look into Mantra’s token management.
What Caused the Crash?
According to Mullin, the crash wasn’t due to any inside scam, but rather a chain reaction of exchange liquidations. Meanwhile, some traders had used OM tokens as collateral for loans.
When the price dropped, those tokens were automatically sold off by the exchange to cover losses, causing even more price drops.
Mantra’s OM Token Recovery Plan
Mullin made it clear that recovering the OM token is their number one goal.
To support this, Mantra is looking at two major steps;
Mullin said they are implementing a buyback option to increase demand. However, the team may start buying OM tokens from the market using their own funds to increase the demand.
$109 Million Fund Ready to Support Recovery
One of the more promising updates is that Mantra has a $109 million ecosystem fund. This money is now being focused on reviving the project and supporting the OM token. It shows a strong commitment to bounce back stronger.
Since the crash, OM has started to recover slightly, now trading around $0.60 with a market cap of $585 million. While the road ahead may be tough, the Mantra team says they’re not backing down.
