MANTRA Labs Releases Post-Mortem Report Detailing the 92% Drop of Its OM Token

The sudden drop, occurring around 18:28 UTC, caught token holders off guard and raised alarms due to its unprecedented nature.

The ERC-20 token was fully distributed and in public circulation by 15 April, with 99.995% of tokens circulating within more than 123,000 wallets.

The classic ERC-20 tokens were initiated in August 2020 and are fully liquid and tradeable.

This means that the trading activity was by external holders and broader market dynamics, and not by the Mantra team.

Upon the launch of Manta Chain in October 2024, a new supply of 888.88 million OM tokens was minted on the native blockchain.

Of the total token supply, 77.5 million OM tokens are currently in circulation.

The results showed that many OM tokens were transferred to the exchange as collateral at low trading volume.

This led to forced selling and programs disposing of their holdings, which added further pressure on the token.

First, the forced liquidations happened during periods of low market turnover, thereby triggering a negative feedback loop and price declines.

The gaps between the exchange prices, especially OKX and Binance prices, deepened the liquidation phase.

In the future, Mantra intends to take action to maintain this market and benefit its token holders. These include an OM Token buyback plan, a supply burn strategy, and John Patrick Mullin, Mantra CEO, declaring plans to burn his team’s allocation.

Furthermore, the team intends to enhance coordination with exchange partners to achieve higher levels of clarity in trading activities. To improve the overall transparency in the token market, a live tokenomics bucket balance dashboard will also be implemented.