Mantra CEO John Mullin discussed the challenges surrounding the OM token’s recent drop during a Cointelegraph Ask Me Anything (AMA) on April 14, emphasizing that the token’s recovery remains a top priority for the company, despite being in the early stages of formulating a recovery plan.
Mullin reassured the community that both Mantra and its partners are focused on supporting the OM token’s recovery. He noted that while the company is working on plans for token buybacks and potential burns, these strategies are still under development.
“We’re just beginning to outline a potential buyback strategy,” Mullin said, stressing that the token’s recovery is their “foremost concern at the moment.”
At the time of the AMA, the OM token was priced at $0.73, slightly higher than the low of $0.52 it hit on April 13, according to CoinGecko data.
Addressing “Baseless Allegations” Mullin also responded to claims that major Mantra investors had sold off their OM tokens prior to the crash. He dismissed allegations that the Mantra team holds 90% of the token’s supply.
“This claim is unfounded. We published a community transparency report last week that outlines all the relevant wallets,” Mullin stated, explaining the two components of Mantra’s tokenomics.
He pointed out that the Ethereum-based OM token is capped and has been circulating since August 2020, with Binance being the largest holder on exchanges.
However, the largest OM wallet is currently controlled by the crypto exchange OKX, which holds 14% of the circulating supply—approximately 130 million tokens.
Updates on the $109M Mantra Ecosystem Fund (MEF) Mullin also shared updates on the Mantra Ecosystem Fund (MEF), which launched on April 7 with an initial value of $109 million. This fund was created in collaboration with major strategic partners like Laser Digital, Shorooq, Brevan Howard Digital, Valor Capital, and others.
According to Mullin, the MEF is not solely composed of OM tokens and includes dollar contributions. “We’ll continue to invest in and support the ecosystem as part of our recovery efforts,” he said.
Binance Staking Program Closure Mullin explained that a 38-million-OM transaction to Binance’s cold wallet on April 14 was related to the closure of a staking program on the Binance exchange. “Binance had OM tokens on their platform used for staking, and they returned them once the staking program ended,” Mullin clarified.
He also noted that many of the transactions that raised concerns in the community post-crash were linked to collateral being used by an unnamed exchange. Mullin explained that the exchange had liquidated its positions, which triggered a chain reaction of selling pressure and further liquidations.
“We’re addressing the situation with complete transparency,” Mullin emphasized. “This is an unfortunate event, but we are committed to resolving it.”
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