Mantra CEO Proposes to Burn His OM Token Holdings
JP Mullin, the CEO of Mantra, has announced plans to burn his complete allocation of 772,000 OM tokens amidst backlash concerning the project’s recent downturn and allegations of insider trading.
This announcement comes after an intense three-day period of examination, during which the Mantra (OM) token experienced a staggering 90% drop from its recent peak, resulting in a loss of $5 billion in market capitalization. Mullin shared his thoughts on X on April 15, responding to a community member’s suggestion that the Mantra team should postpone upcoming token unlocks scheduled for April as a gesture of commitment to long-term objectives.
Mullin clarified that the tokens allocated to the team will not begin to vest until 2027, which is 30 months post the anticipated mainnet launch of Mantra Chain in October 2024. He expressed his intention to burn his entire team allocation and mentioned that the community would determine in the future whether he deserves to regain those tokens.
This claim incited discussions within the community. Crypto Banter’s founder, Ran Neuner, argued that such a measure could be detrimental, as strong incentives are crucial to maintain team motivation. Mullin countered that he was exclusively referring to his own allocation and emphasized that the aim was to restore trust following the sharp decline. He also mentioned the possibility of placing the tokens into a community-governed mechanism instead of burning them completely.
Mullin previously shared a screenshot revealing that he has 772,081 OM tokens staked on Fluxtra, indicating he is “100% staked” on the platform. The total team allocation consists of 300 million OM tokens, which are locked until April 2027. Restoring the OM token’s value is being prioritized, with strategies such as buybacks and token burns under consideration, according to Mullin.
The situation escalated further when well-known scam investigator Coffeezilla shared a synopsis of his YouTube interview with Mullin. He claimed that the Mantra team had sold $25–$45 million worth of tokens through over-the-counter transactions at a significant discount, then used $5–$10 million to repurchase OM. Coffeezilla suggested this constituted price manipulation, a claim that Mullin refuted.
According to a report by crypto.news dated April 15, the crash was exacerbated by poor liquidity and forced liquidations, as the market depth for OM plummeted from $290 million to just $473,000. Approximately $21 million in long positions were liquidated on OKX alone. As of the latest update, the OM token remains under significant pressure, trading at $0.7479, marking an 88% decrease over the past week.