Mantra CEO John Mullin has denied insider selling allegations and clarified that the OM token crash was due to exchange liquidations, not fraudulent activity. He outlined a recovery plan that includes a buyback scheme and highlighted a $109 million fund to support the token’s recovery, which has begun to show signs of recovery after a significant price drop.
In a significant update regarding the recent crash of Mantra’s OM token, CEO John Mullin has addressed various concerns raised by the crypto community. He strongly denies allegations of insider selling, asserting that the Mantra team does not control 90% of the token supply. Furthermore, Mullin clarified that the price drop was primarily a result of exchange liquidations rather than any fraudulent activity or lack of transparency from the team.
Mullin detailed the crash, attributing it to a chain reaction caused by traders using OM tokens as collateral for loans. When the token’s price fell, these tokens were liquidated by exchanges to cover losses, contributing to the drastic price decline. Thus, Mullin aimed to dispel allegations of a scam, emphasising that the collapse was mainly market-driven.
To facilitate the recovery of the OM token, Mullin outlined Mantra’s proactive recovery strategy involving a buyback scheme. The team plans to purchase OM tokens from the market to increase demand and support price stability. This initiative is coupled with a commitment to transparency as a means of restoring community trust.
Additionally, Mantra boasts a substantial ecosystem fund of $109 million, earmarked for revitalising the project and supporting the OM token’s recovery. This financial backing signals the team’s determination to rebound from recent setbacks. Following the initial crash, there are indications of slight recovery, with the OM token now trading around $0.60 with a market cap of $585 million. While challenges remain, Mantra’s leadership maintains a resilient outlook towards future growth and stability in the crypto market.
