Mantra Calls for Industry-Wide Cooperation to Reduce Investor Risks After OM Token Crash

Decentralized finance (DeFi) platform Mantra has called for industry-wide cooperation to reduce investor risks in the aftermath of its OM token crash.

On April 30, Mantra published its latest update since the sudden collapse of its OM token, claiming that the incident was “bigger than Mantra.”

“Liquidation cascades could happen to any project in the crypto industry,” Mantra CEO John Mullin warned in the post, pointing to the role of “aggressive leverage positions” on exchanges as a broader threat to investor safety.

“We’re cooperating with major exchanges to improve market stability, and we’re calling on the rest of our industry to provide input on how exchange policies can minimize — or continue to permit — policies that create risk to investors,” the update states.

Progress includes governance improvements

Aside from calling global centralized exchanges to review their leverage policies, Mantra highlighted a few key solutions that are being implemented following the OM crash.

The first point concerned governance improvements to the Mantra chain with a focus on decentralization.

Mantra has pledged to accelerate its validator diversification efforts by winding down internal validators and adding more support partners.

“By the end of Q2 2025, we’ll have reduced internal validators by half and onboarded 50 total external partner validators,” the update stated.

Additionally, the update mentioned that Mantra has burned 150 million staked OM tokens, permanently removing them from the total supply.

To enhance transparency, Mantra has introduced a real-time dashboard featuring tokenomics data. It has also begun alpha testing a new Ethereum Virtual Machine-compatible testnet called Omstead, aimed at improving technical resilience.

The post highlighted that the Mantra chain continued operating without interruption during the price drop, even with transaction volumes at all-time highs.

Industry seems largely uninterested in responding

While Mantra has repeatedly called for collaboration with exchanges, the issue does not appear to have been meaningfully addressed by crypto trading firms.

OKX has declined to comment on the Mantra situation or potential policy collaboration following the OM token crash, despite multiple requests from Cointelegraph.

In the meantime, OKX CEO Star Xu was one of the first crypto executives to highlight the massive scale of the OM crash shortly after the incident occurred on April 13, calling it a “big scandal to the whole crypto industry.”

OKX declined to comment further on Mantra’s industry-wide call to action.

Both Mantra and Binance did not immediately respond to Cointelegraph requests for comment.