In what’s otherwise a boring week in crypto, Mantra’s price collapse was a hot topic this week as the price plunged 90% last Sunday. As a reminder, CaptainAltcoin’s team was among the first to report what happened in the whole industry.

The only positive thing about this crash is that Mantra’s team seems strong behind the project still and they just released a ‘rescue plan’ after a massive OM price plunge.

Last Sunday, MANTRA’s OM token crashed spectacularly, dropping over 90% from around $6.30 to under $0.50 in just a few hours. This wipeout erased more than $5 billion in market value and sent shockwaves through crypto markets.

Several factors contributed to the collapse, including forced liquidations during low-liquidity periods, large token deposits from certain wallets, and growing concerns about the project’s tokenomics and transparency.

In response to the crisis, MANTRA quickly announced a four-step recovery plan. First, they will implement a token buyback and burn program to reduce supply and support the price. Second, they’ll burn token allocations meant for co-founder JP Mullin and the team, showing their commitment to the project. Third, they’ll work with exchanges to analyze what led to the crash. Finally, they’ll launch a transparency dashboard giving real-time insights into token metrics.

In response to the significant and unexpected downward price action experienced by the $OM token earlier this week, our team has compiled this fact-based assessment. It addresses our community’s questions and outlines measures to strengthen market resilience.

Our investigation… pic.twitter.com/v0HzaKiDHD

Despite these efforts, many investors remain skeptical. Analysts have spotted a bear pennant pattern in OM’s price chart, hinting at possible further drops if key resistance levels aren’t broken. Concerns about the project’s tokenomics and recovery plan effectiveness continue to linger in the community.

As of April 18, OM trades around $0.63, down dramatically from its February 2025 peak of $9.04. The next few days will be crucial in determining whether MANTRA can win back investor trust and stabilize the token.

Interestingly, MANTRA’s team claims they didn’t sell any tokens during the crash. Their team and advisory allocations remain locked on the MANTRA mainnet, with the liquid supply involved in the sell-off mostly consisting of older ERC-20 OM tokens, not newer tokens minted on MANTRA Chain.

The MANTRA ecosystem operates with two types of OM tokens. First, there’s the legacy ERC-20 OM launched in August 2020, with a fixed supply of 888.88 million tokens. As of April 15, 2025, 99.995% of these tokens are circulating across more than 123,000 wallets. These tokens were distributed years ago through various sales, team pools, staking, and grants, putting them completely beyond the project’s control.

On the other hand, MANTRA Chain Mainnet OM launched in October 2024 with the same fixed supply. However, only 77.5 million OM (about 8.7%) are currently in circulation on the mainnet, with the team’s allocation still locked.

The key takeaway is that the token dump wasn’t driven by insiders. The crash centered around ERC-20 tokens that have been in public hands for years. This makes the collapse more about market panic, large holders exiting positions, and low liquidity rather than questionable developer behavior. All these factors were intensified by poor visibility into token movements at the time.

This explains why one of the core elements of MANTRA’s recovery plan is launching a transparency dashboard – to help prevent similar incidents by giving the community real-time insight into token balances and flows.

Read also: This Mantra Holder Lost $3.3 Million After the OM Price Crash, Legal Action Ahead – Here’s What Happened

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The post Burn and Rebuild: Mantra Unveils Bold $OM Rescue Plan After Massive Collapse appeared first on CaptainAltcoin.

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