On April 13, 2025, OM — the native token of the Mantra ecosystem — experienced a sharp and unexpected crash, plunging from $6 to just $0.37. This dramatic drop wiped out over $5 billion in market capitalization within hours and left the crypto community stunned.
💥 What Caused the Crash?
According to Mantra CEO John Patrick Mullin, the crash was triggered by a cascade of forced liquidation events on centralized exchanges (CEXs). These automatic sell-offs occurred during a period of low liquidity, which caused the price to spiral downward rapidly, eventually leading to a domino effect across the market.
🔁 The Recovery Plan: Buyback & Burn
To stabilize OM and rebuild community trust, Mantra has announced a multi-step recovery plan focusing on buying back and burning tokens to reduce supply:
🔥 1. Personal Token Burn
CEO John Patrick Mullin has committed to burning all 772,000 OM tokens under his personal ownership to set an example and show his dedication to the project’s recovery.
🔥 2. Developer Team Token Burn Proposal
A new community proposal will seek to burn 300 million OM tokens that are currently locked and allocated to the team — representing 17% of the total token supply, valued at around $200 million.
💰 3. Market Buyback Using Ecosystem Fund
Mantra plans to use $109 million from its ecosystem fund to buy back OM tokens from the market. These tokens will also be burned to reduce circulating supply and increase token scarcity.
📈 Market Response and Outlook
Following the announcement, the price of OM quickly rebounded to approximately $0.68, marking a 30% recovery from the $0.37 bottom. However, it still remains down significantly from the recent all-time high of $6.
Mantra has also launched a new tokenomics dashboard to increase transparency and will soon publish a full incident report detailing the causes behind the crash.
Read more: OM Crash Was No Coincidence: The Manipulation Script Behind the Collapse