Mantra Restructures After “Brutal” Collapse of OM Token
Mantra, a blockchain project focused on tokenized real-world assets, is undergoing a significant restructuring effort after a sharp decline in its OM token and prolonged market pressure. According to John Patrick Mullin, CEO and co-founder of Mantra, the company is reducing its workforce and adopting a leaner operating model to navigate the challenging market conditions.
In a statement, Mullin announced that the restructuring is a response to the “most difficult year” for Mantra, marked by aggressive expansion, a brutal token decline, and a decline in market sentiment towards tokenized real-world assets. The decision to restructure comes after a year of significant investments in scaling the project’s RWA infrastructure, chain, and ecosystem.
Mantra’s Challenges and Restructuring Efforts
The collapse of the OM token in April 2025, which saw its value drop from around $6.30 to below $0.50 in a single day, was a significant blow to the project. The token’s market capitalization plummeted by over $6 billion, sparking widespread concern across the DeFi sector. Mantra denied any wrongdoing and attributed the crash to forced liquidations by a major token holder on a centralized exchange.
According to data from CoinGecko, the OM token has continued to trade around 99% below its peak value of $8.99, reached in February 2025. In response to the collapse, Mantra has taken steps to restore confidence, including the destruction of 150 million OM tokens allocated to Mullin and the launch of a token buyback program and public tokenomics dashboard.
A Fresh Start for Mantra
Despite the challenges, Mantra remains committed to its RWA strategy and believes that a leaner structure will better equip it to manage market volatility and deliver on its long-term vision. Mullin emphasized that the company will focus on disciplined execution, resource conservation, and capital efficiency to stabilize and rebuild. As the crypto market continues to evolve, Mantra’s ability to adapt and navigate the changing landscape will be crucial to its success.
For more information on Mantra’s restructuring efforts and the collapse of the OM token, visit https://cryptonews.com/news/mantra-staff-restructure-om-token-collapse/
