15h00 ▪ 4 min in reading ▪ By Evans S.
Storms can break out in the blink of an eye in the crypto sphere. Mantra (OM), formerly brought to the clouds by her supporters, has just undergone a dizzying fall of 95 %. While the accusations of manipulation and opacity fuse, John Mullin, CEO of the project, goes up to the niche. Between firm denial and recovery promises, the scenario mixes crisis of confidence and survival strategies.
Drastic fall of the Crypto Mantra (OM): the CEO of the project reacts
The debacle of Mantra (OM) woke up the old demons of the crypto-sphere: sales of initiates, rug in sweater, opacity … allegations that John Mullin is sweeping away.
During a recent exchange with the community, the CEO qualified these rumors of fantasies unrelated to reality. Digital laser, implicated for an alleged leak before the crash, would be innocent. “No portfolio linked to our partners has been emptied”he insists, brandishing a transparency ratio supposed to clarify the origin of the transactions.
But then, what is the cause of this collapse? Mullin points to a domino technical effect: massive liquidations on exchange platforms.
Concretely, traders would have used the OM crypto as a guarantee for loans. When the price started to tremble, the bots took over, automatically selling the cryptos to cover the losses. A cold, almost mechanical sequence, which would have precipitated the fall. “It’s not a criminal scenario, just an algorithm that gets carried away”he sums up.
To reverse the trend, Mantra plans a daring maneuver: buy OM cryptos on the market and burn part. A classic, but risky strategy, aimed at creating an artificial rarity. “We will inject our own liquidity if necessary,” says Mullin. It remains to be seen whether these purchases will be enough to calm the psychosis of investors, now suspicious.
-A fund of $ 109 million ready to support the recovery
At the heart of the turmoil, Mantra reveals her secret weapon: an ecosystem fund of $ 109 million. “This money is a safety net, but also a lever to rebuild”explains Mullin.
Intended to finance partnerships, technical developments and marketing campaigns, this jackpot could breathe a breath to the OM crypto. However, the community whispers: what if this fund was used above all to hide the flaws of the project?
Despite the doubts, the figures speak: the crypto OM has slightly raised the slope, now flirting with $ 0.60, for a capitalization of $ 585 million. A fragile upturn, praised by the team as a sign of resilience. “We are going through a crisis, not a sinking”tempers Mullin. Some observers, however, see it as a mirage, recalling that massive buyouts can temporarily distort the market.
The road will be long. Between the redemption procedures, the management of the fund and the reconquest of confidence, Mantra will have to juggle expectations and suspicions. “Transparency will be our mantra”promises the CEO, skillfully playing on words. But in an ecosystem where promises often shatter, the challenge is size.
Mantra’s collapse (OM) reveals a raw truth: in crypto, crises are born as quickly as hopes. If Mullin tries to turn off the fire with technical explanations and emergency measures, distrust persists. The 109 million fund and the takeover of tokens offer a buoy, but will they be enough to avoid sinking?
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Fascinated by Bitcoin since 2017, Evariste has not stopped documenting on the subject. If his first interest focused on trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, it aspires to permanently provide high quality work which reflects the state of the sector as a whole.
