MANTRA Investigates 92% Decline in OM Token Value: Analysis Reveals Market Dynamics and Future Stability Measures

On April 13th, the OM token experienced a sudden and sharp decline of 92%. The precipitous drop, which took place around 18:28 UTC, resulted in considerable concern amongst the token’s community, due to its unexpected nature. In response to this significant market event, the MANTRA team immediately launched an investigation to understand the underlying causes of the price movement and to verify the current circulating supply of OM tokens. The aim of this endeavour is to address the concerns of the community and to reinforce future market stability.

The analysis was initiated as a direct reaction to the substantial and unforeseen downward price change experienced by the $OM token. The MANTRA team has put together a comprehensive, fact-based assessment to address the community’s concerns and questions, and to propose measures to bolster market resilience.

The findings of the analysis showed that during the aggregate market shock, the MANTRA team was not able to make any sales. All Mainnet OM tokens allocated to the team and advisors remain locked. The losses were linked to the ERC-20 OM tokens, which are fully distributed and publicly circulating.

Specifically, the total supply of classic ERC-20 tokens was distributed among users, with almost the entirety of tokens (99.995%) circulating within more than 123,000 wallets by April 15th. Since these tokens were initiated in August 2020, they are fully liquid and tradeable. This indicates that the trading activity was mainly driven by external holders and broader market dynamics, rather than by the MANTRA team.

In October 2024, following the launch of the MANTRA Chain, a new supply of 888.88 million OM tokens was minted on the native blockchain. Currently, 77.5 million OM tokens are in circulation, representing a significant portion of the total token supply.

The investigation also revealed that a large number of OM tokens were transferred to the exchange as collateral at a low trading volume. This resulted in forced selling and programs disposing of their holdings, which added further pressure on the token. The forced liquidations occurred during periods of low market turnover, triggering a negative feedback loop and price declines. The gaps between the exchange prices, particularly between OKX and Binance prices, intensified the liquidation phase.

Looking ahead, the MANTRA team plans to take proactive steps to sustain the market and provide benefits to its token holders. These steps include an OM token buyback plan, a supply burn strategy, and a plan by John Patrick Mullin, the CEO of MANTRA, to burn his team’s allocation. Furthermore, the team plans to improve coordination with exchange partners to ensure greater clarity in trading activities. To enhance overall transparency in the token market, a live tokenomics bucket balance dashboard will also be implemented.