The cryptocurrency market faced another shockwave this past weekend as Mantra’s native token, OM, experienced a dramatic 88% collapse in value. The sharp decline on April 13 wiped out months of gains and erased more than $5 billion from the project’s market capitalization. In the wake of the crash, Mantra CEO and founder John Mullin declared he would burn the team’s entire token allocation in an effort to rebuild investor confidence and demonstrate his personal commitment to the community.

Mullin made the statement in a post on X, formerly known as Twitter, on April 16. In the statement, he declared his intention to burn all of the OM tokens allocated to the team, emphasizing that if the project recovers, the community could later decide whether he deserved to regain them. The move was widely viewed as a bold, symbolic gesture intended to reassure shaken investors and demonstrate accountability following one of the most sudden collapses in recent crypto memory.

The tokens in question total 300 million OM, representing approximately 16.88% of the circulating supply. Before the crash, their estimated value was around $1.9 billion. Following the steep decline in OM’s price, that value dropped to roughly $234 million. Although these tokens are locked and scheduled for release between April 2027 and October 2029, the promise to burn them is significant and has become a focal point for discussions surrounding the project’s future.

The root cause of the collapse appears to be a wave of forced liquidations across centralized exchanges. Mullin attributed the crash to these liquidation events, which triggered automated sell-offs and exacerbated the downward pressure on OM’s price. However, blockchain analytics platform Lookonchain identified wallet activity suggesting early OM investors may have been involved in large-scale dumping. Mullin denied any association with the wallets flagged and maintained that neither he nor the core Mantra team had any role in the sell-off.

The community’s reaction to Mullin’s pledge has been divided. While some view it as a strong show of leadership and a necessary step toward reestablishing trust, others are more cautious. Industry voices, including Crypto Banter founder Ran Neuner, have raised concerns that removing the team’s financial incentives could harm long-term development. Without a stake in the project’s success, it may be difficult to retain and motivate contributors over time. Several community members have proposed that such a significant decision should be subject to a decentralized vote, allowing token holders to collectively determine the best course of action.

From a market perspective, OM’s technical outlook remains uncertain. The crash effectively erased the bullish trend that had been developing since November 2024, leaving price action in a state of disarray. Analysts are pointing to $0.72 and $0.82 as short-term targets based on liquidation heatmaps, with the potential for OM to test those zones as liquidity builds. However, downside risks remain, and a further drop toward $0.364 cannot be ruled out. The next few weeks will be critical in determining whether OM can find stability or if continued volatility will push the price lower.

The incident has also led to broader questions about the valuation of Mantra’s real-world asset (RWA) ecosystem. With such a large portion of its market value wiped out in a single day, some investors are reassessing whether the project’s previous valuations were justified by fundamentals or inflated by speculation. The crash has served as a reminder of how quickly sentiment can shift in the crypto sector, especially when trust is compromised.

Ultimately, John Mullin’s decision to burn his team’s token allocation is one of the most dramatic moves in recent crypto history. While it may help in restoring some faith among disillusioned holders, the real test will lie in how the project moves forward. Transparency, consistent communication, and delivery on promises will be essential if Mantra hopes to recover and rebuild what was lost.

Trust, once broken in crypto, is difficult to earn back. For Mantra, the journey toward redemption has just begun.