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Mantra CEO John Mullin addressed key concerns from the community following the sharp decline in the OM token during an Ask Me Anything (AMA) session hosted by Cointelegraph on April 14.<\/p>\n
Mullin reassured<\/a> users that Mantra and its partners are actively working to support the recovery of the Mantra (OM) token, though he noted that details around token buybacks and potential burns are still being developed.<\/p>\n \u201cWe\u2019re still in the early stages of putting together this plan for potential buyback of tokens,\u201d the CEO said, adding that the OM token recovery is Mantra\u2019s \u201cpreeminent and primary concern right now.\u201d<\/p>\n At the time of writing, OM traded at $0.73, slightly higher than its post-collapse low of $0.52 recorded on April 13 at around 7:30 pm UTC, according<\/a> to data from CoinGecko.<\/p>\n In addition to denying reports claiming that key Mantra investors dumped<\/a> the OM token pre-crash, the Mantra CEO also denied allegations that the Mantra team controls 90% of the token\u2019s supply.<\/p>\n \u201cI think it\u2019s baseless. We posted a community transparency report last week, and it shows all the different wallets,\u201d Mullin said, highlighting the \u201ctwo sides\u201d of Mantra\u2019s tokenomics.<\/p>\n Source: Cointelegraph<\/em><\/p>\n<\/figcaption><\/figure>\n \u201cYou have the Ethereum side and you have the mainnet side,\u201d Mullin noted, adding the Ethereum-based token is hard capped and has been around since August 2020.\u00a0<\/p>\n \u201cThe biggest holder of OM on exchange is Binance,\u201d Mullin continued, referring the public to Etherscan records<\/a>.<\/p>\n The top eight addresses of OM holdings. Source: Etherscan<\/em><\/p>\n<\/figcaption><\/figure>\n However, the top OM wallet is currently held by crypto exchange OKX, which controls 14% of the circulating supply, or roughly 130 million tokens.<\/p>\n Mullin also addressed the Mantra Ecosystem Fund (MEF), a $109-million fund launched on April 7<\/a> in collaboration with its major strategic investors, including Laser Digital and Shorooq.<\/p>\n Other investors in the fund also included Brevan Howard Digital, Valor Capital, Three Point Capital, Amber Group, Manifold, UoB Venture, Damac, Fuse, LVNA Capital, Forte and others.<\/p>\n Related: <\/strong><\/em>Mantra bounces 200% after OM price crash but poses LUNA-like \u2018big scandal\u2019 risk<\/strong><\/em><\/a><\/p>\n According to Mullin, the fund does not solely consist of Mantra\u2019s OM token and has \u201cdollar commitments and dollar contributions.\u201d<\/p>\n Investors in Mantra\u2019s $109-million fund. Source: Mantra<\/em><\/p>\n<\/figcaption><\/figure>\n \u201cWe\u2019ll continue to invest and support the ecosystem as part of this recovery plan,\u201d the CEO stated.<\/p>\n In the AMA, the Mantra CEO also said that a 38-million-OM transaction to the Binance cold wallet on April 14 is related to a staking program on Binance.<\/p>\n \u201cIt was actually Binance,\u201d Mullin said, adding that Binance had OM tokens on its exchange that it was using as a staking program.<\/p>\n Source: <\/em>Onchain Lens<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n \u201cSo, they just returned them because the staking program ended,\u201d he said.<\/p>\n Mullin also emphasized that many of the transactions that caught the community\u2019s reactions post-crash involved collaterals by an unnamed exchange<\/a>.<\/p>\n \u201cEffectively, 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,\u201d Mullin said, adding:<\/p>\n \u201cSo, 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.\u201d<\/p><\/blockquote>\n Mullin said Mantra remains committed to addressing the situation as transparently as possible.<\/p>\n \u201cWe\u2019re not running from anything,\u201d he said, adding that the incident was a \u201cvery unfortunate situation.\u201d<\/p>\n\u201cBaseless allegations\u201d<\/h2>\n
What\u2019s next for Mantra\u2019s $109-million MEF fund?<\/h2>\n
End of the staking program on Binance<\/h2>\n