Mantra CEO Proposes Burning His Token Allocation Amid Criticism
JP Mullin, the CEO of Mantra, has announced plans to burn his entire 772,000 OM token allocation. This decision comes after the project faced severe criticism following a massive token price drop. The OM token value plummeted over 90%, erasing $5 billion in market value.
Mullin shared his intentions on X, responding to a community suggestion. The suggestion was to delay upcoming token unlocks to show commitment. However, Mullin took a bolder step, promising to burn his tokens. He aims to restore trust after the recent market crash.
Mantra’s OM token experienced a catastrophic decline, sparking concerns about insider trading. Mullin’s announcement came after three days of intense scrutiny. He clarified that team tokens won’t vest until 2027,30 months after the mainnet launch in October 2024. He believes this move will help rebuild confidence. He stated that the community should decide if he deserves them later. This gesture is part of efforts to stabilize OM’s value. The team’s tokens are locked until 2027.Mullin’s OM tokens are tied up until then. He hopes this action will signal his commitment to the project.
Mullin’s decision has sparked mixed reactions. Crypto Banter founder Ran Neuner believes burning tokens could be counterproductive. He argues that incentives are crucial for team motivation. However, Mullin insists his move is about rebuilding trust. He suggests placing the tokens in a community-controlled system instead of burning them.
Previously, Mullin shared a screenshot showing his 772,081 OM staked on Fluxtra, indicating his faith in the platform. The team’s 300 million OM allocation is locked until April 2027. mullin’s top priority is restoring OM’s value, considering strategies like buybacks and burns.
The situation intensified after Coffeezilla, a scam investigator, accused the Mantra team of price manipulation. he claims the team sold $25-$45 million worth of tokens at a discount and later bought back $5-$10 million worth of OM. Mullin denies these allegations,stating it wasn’t price manipulation. The crash was exacerbated by low liquidity and forced liquidations. Market depth dropped from $290 million to $473,000. Around $21 million in long positions where liquidated on OKX. OM now trades at $0.7479,down 88% in seven days. Despite the controversy, Mullin remains committed to turning the project around.
