MANTRA has launched an prognosis of the OM token’s appealing 92% decline on April Thirteenth, which sparked serious problem amongst the token’s community. The surprising fall, occurring round 18:28 UTC, caught token holders off guard and raised alarms attributable to its unheard of nature. In response, the MANTRA team initiated an investigation to search out out the underlying causes of the rate motion and to substantiate the most up-to-date circulating provide of OM tokens. This effort targets to contend with community issues and toughen the market’s future balance.
In step with the predominant and unexpected downward designate action experienced by the $OM token earlier this week, our team has compiled this reality-primarily based evaluate. It addresses our community’s questions and descriptions measures to provide a enhance to market resilience.
Our investigation… pic.twitter.com/v0HzaKiDHD
— MANTRA | Tokenizing RWAs (@MANTRA_Chain) April 16, 2025
ERC-20 Token Circulation
On the opposite hand, the narrative printed that the MANTRA team was as soon as unable to accept any sales all the scheme via the market aggregate shock. All Mainnet OM tokens allocated to the team and advisors remain locked. The losses contain been linked with the ERC-20 OM tokens, that contain been fully disbursed and in public circulation.
Particularly, the total provide of traditional ERC-20 tokens was as soon as disbursed amongst the customers, with Ninety nine.995% of tokens circulating within more than 123,000 wallets by 15 April. These tokens contain been initiated in August 2020, and hence, they’re fully liquid and tradeable, which manner that the trading project was as soon as by exterior holders and broader market dynamics, and no longer by the MANTRA team.
In October 2024, with the starting up of MANTRA Chain, a new provide of 888.88 million OM tokens was as soon as minted on the native blockchain. Of the total token provide, 77.5 million OM tokens are for the time being in circulation, representing a substantial piece of the general provide.
Low Volume Influence
The outcomes showed that many OM tokens contain been transferred to the exchange as collateral at low trading quantity. This ended in forced selling and functions eliminating their holdings, which added extra tension on the token.
First, the forced liquidations took site all the scheme via periods of low market turnover, thereby triggering a unfavorable feedback loop and rate declines. The gaps between the exchange prices, especially OKX and Binance prices, deepened the liquidation half.
Within the lengthy toddle, MANTRA intends to rob action to aid this market and aid its token holders. These consist of an OM Token buyback thought, a provide burn technique, and John Patrick Mullin, MANTRA CEO, declaring plans to burn his team’s allocation.
Further, the team intends to pork up coordination with exchange partners to quit bigger ranges of clarity in trading actions. To toughen the general transparency in the token market, a reside tokenomics bucket steadiness dashboard will also be implemented.
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