- Mantra’s founder and CEO promised the stock of the 300 million team to burn.
- The crash on 13 April eroded the structure and trust of the community – the reconstruction will take a while.
After mantra [OM] Saw a crash of 90% on April 13, CEO John Mullin claimed that “forced liquidations” were to blame for this drop at centralized fairs.
Lookonchain marked a number of early OM investors as linked to the dumping portfolios, but Mullin denied these claims.
More recently, the founder announced that he intended to burn the team’s tokens. In A message on X On April 16 he wrote,
“I intend to burn all my teamtokens and when we turn the community around and investors can decide if I have earned it.”
There were 300 million, or 16.88% of the circulating stock, reserved for the team and are core contributions. Before the price fall of 90%, these tokens were worth around $ 1.9 billion.
On the press their value was around $ 234 million. These tokens are locked and are planned to be released in phases between April 2027 and October 2029.
Some members of the community welcomed this step and suggested that it had to be brought to a decentralized vote.
Others, such as Crypto Banter founder Ran Neuner, noted that this movement could jeopardize the motivation of the team in the long term.
What do the price diagrams say?
Source: OM/USDT on TradingView
In short, nothing good. A wipeout of 90% makes technical analysis difficult, because it knew the trend that has built up in recent months.
The November rally was erased one day and the extension level of 27.2% was tested under the depth of November. A drop below $ 0.364 seemed possible.
The 3-day liquidation heat showed that there was a structure of liquidity at $ 1, just above current market prices. To climb another 30% to test this liquidity area.
The 24-hour Hittemap emphasized the $ 0.72 and $ 0.82 as the nearby liquidation clusters. It would probably test one and then sweep the other.
The order of this step was unclear, but the $ 0.82 was closer and therefore to be tested earlier.
Whether Mantra can recover from Sunday’s fall is still to be seen. The community was shocked, but there is a chance that RWA investors would see this as an opportunity. Dyor is extremely important.
On Sunday, $ 5 billion in market capitalization was devoted from Mantra, which wonders whether this RWA ecosystem is worth so much, or whether a good part of it was vapor.
Investors may want to wait instead of buying FOMO.
Disclaimer: The presented information does not form financial, investments, trade or other types of advice and is only the opinion of the writer
