Mantra CEO says OM token recovery ‘primary concern’ but in early stages

Mantra CEO John Mullin addressed key issues from the neighborhood following the sharp decline in the OM token throughout an Ask Me Anything (AMA) session hosted by Cointelegraph on April 14.

Mullin reassured customers that Mantra and its companions are actively working to assist the recovery of the Mantra (OM) token, although he famous that particulars round token buybacks and potential burns are nonetheless being developed.

“We’re still in the early stages of putting together this plan for potential buyback of tokens,” the CEO mentioned, including that the OM token recovery is Mantra’s “preeminent and primary concern right now.”

At the time of writing, OM traded at $0.73, barely increased than its post-collapse low of $0.52 recorded on April 13 at round 7:30 pm UTC, in response to information from CoinGecko.

“Baseless allegations”

In addition to denying experiences claiming that key Mantra traders dumped the OM token pre-crash, the Mantra CEO additionally denied allegations that the Mantra workforce controls 90% of the token’s provide.

“I think it’s baseless. We posted a community transparency report last week, and it shows all the different wallets,” Mullin mentioned, highlighting the “two sides” of Mantra’s tokenomics.

“You have the Ethereum side and you have the mainnet side,” Mullin famous, including the Ethereum-based token is tough capped and has been round since August 2020. 

“The biggest holder of OM on exchange is Binance,” Mullin continued, referring the general public to Etherscan information.

However, the highest OM pockets is at the moment held by crypto alternate OKX, which controls 14% of the circulating provide, or roughly 130 million tokens.

What’s subsequent for Mantra’s $109-million MEF fund?

Mullin additionally addressed the Mantra Ecosystem Fund (MEF), a $109-million fund launched on April 7 in collaboration with its main strategic traders, together with Laser Digital and Shorooq.

Other traders in the fund additionally included Brevan Howard Digital, Valor Capital, Three Point Capital, Amber Group, Manifold, UoB Venture, Damac, Fuse, LVNA Capital, Forte and others.

Related: Mantra bounces 200% after OM worth crash but poses LUNA-like ‘big scandal’ threat

According to Mullin, the fund doesn’t solely encompass Mantra’s OM token and has “dollar commitments and dollar contributions.”

“We’ll continue to invest and support the ecosystem as part of this recovery plan,” the CEO acknowledged.

End of the staking program on Binance

In the AMA, the Mantra CEO additionally mentioned {that a} 38-million-OM transaction to the Binance chilly pockets on April 14 is expounded to a staking program on Binance.

“It was actually Binance,” Mullin mentioned, including that Binance had OM tokens on its alternate that it was utilizing as a staking program.

“So, they just returned them because the staking program ended,” he mentioned.

Mullin additionally emphasised that lots of the transactions that caught the neighborhood’s reactions post-crash concerned collaterals by an unnamed alternate.

“Effectively, those tokens were being used as collateral on an exchange. Then, the exchange decided that it was not the position they wanted to maintain anymore, for whatever reason,” Mullin mentioned, including:

“So, what happened was basically the positions were taken over by the exchange that took the collateral and started selling, which caused a cascade of sell pressure and forced more liquidations.”

Mullin mentioned Mantra stays dedicated to addressing the state of affairs as transparently as potential.

“We’re not running from anything,” he mentioned, including that the incident was a “very unfortunate situation.”

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