JP Mullin, CEO of MANTRA, is initiating a token burn by eliminating 150 million OM tokens from his own portion and coordinating with other partners to burn an additional 150 million tokens. This action, totaling 300 million tokens, is aimed at rebuilding investor confidence in the project and stabilizing the altcoin’s price dynamics.

OM is recovering from a significant crash on April 13, where it plunged over 90% in value within an hour, resulting in the loss of more than $5.5 billion in market capitalization. This crash sparked concerns of insider trading and manipulation within the Real-World Assets (RWA) sector.

MANTRA, a key player in the RWA sector, underwent a major setback on April 13 when its token plummeted more than 90% in value in a short period, wiping out over $5.5 billion in market cap.

The drop followed a sudden surge earlier in the year, pushing OM's value from $0.013 to over $6, boosting its valuation to $11 billion. The crash was reportedly triggered by a $40 million token deposit into OKX from a wallet linked to the team, leading to suspicions of insider trading.

To restore trust, Mullin is permanently burning 150 million OM tokens from his team's allocation, reducing the total supply from 1.82 billion to 1.67 billion. The tokens, initially staked in October 2024, will be fully burned by April 29. This move could impact the network's staked amount and on-chain staking APR.

Efforts are also underway to collaborate with partners for a subsequent burn of another 150 million OM tokens, potentially reducing the total supply by 300 million tokens.

Despite these token burn initiatives, there is uncertainty whether they will be sufficient to fully regain investors' trust in OM. The token's price faces a critical test, with potential resistance at various levels and a delicate balance between a potential recovery and further decline.