Mantra CEO John Mullin addressed key considerations from the neighborhood following the sharp decline within the OM token throughout an Ask Me Something (AMA) session hosted by Cointelegraph on April 14.
Mullin reassured customers that Mantra and its companions are actively working to help the restoration of the Mantra (OM) token, although he famous that particulars round token buybacks and potential burns are nonetheless being developed.
“We’re nonetheless within the early levels of placing collectively this plan for potential buyback of tokens,” the CEO mentioned, including that the OM token restoration is Mantra’s “preeminent and first concern proper now.”
On the time of writing, OM traded at $0.73, barely increased than its post-collapse low of $0.52 recorded on April 13 at round 7:30 pm UTC, in accordance to information from CoinGecko.
“Baseless allegations”
Along with denying studies claiming that key Mantra buyers dumped the OM token pre-crash, the Mantra CEO additionally denied allegations that the Mantra group controls 90% of the token’s provide.
“I feel it’s baseless. We posted a neighborhood transparency report final week, and it reveals all of the completely different wallets,” Mullin mentioned, highlighting the “two sides” of Mantra’s tokenomics.
Supply: Cointelegraph
“You’ve the Ethereum facet and you’ve got the mainnet facet,” Mullin famous, including the Ethereum-based token is tough capped and has been round since August 2020.
“The largest holder of OM on trade is Binance,” Mullin continued, referring the general public to Etherscan information.
The highest eight addresses of OM holdings. Supply: Etherscan
Nevertheless, the highest OM pockets is at present held by crypto trade OKX, which controls 14% of the circulating provide, or roughly 130 million tokens.
What’s subsequent for Mantra’s $109-million MEF fund?
Mullin additionally addressed the Mantra Ecosystem Fund (MEF), a $109-million fund launched on April 7 in collaboration with its main strategic buyers, together with Laser Digital and Shorooq.
Different buyers within the fund additionally included Brevan Howard Digital, Valor Capital, Three Level Capital, Amber Group, Manifold, UoB Enterprise, Damac, Fuse, LVNA Capital, Forte and others.
Associated: Mantra bounces 200% after OM value crash however poses LUNA-like ‘massive scandal’ danger
In response to Mullin, the fund doesn’t solely encompass Mantra’s OM token and has “greenback commitments and greenback contributions.”
Traders in Mantra’s $109-million fund. Supply: Mantra
“We’ll proceed to take a position and help the ecosystem as a part of this restoration plan,” the CEO said.
Finish of the staking program on Binance
Within the AMA, the Mantra CEO additionally mentioned {that a} 38-million-OM transaction to the Binance chilly pockets on April 14 is said to a staking program on Binance.
“It was truly Binance,” Mullin mentioned, including that Binance had OM tokens on its trade that it was utilizing as a staking program.
Supply: Onchain Lens
“So, they simply returned them as a result of the staking program ended,” he mentioned.
Mullin additionally emphasised that most of the transactions that caught the neighborhood’s reactions post-crash concerned collaterals by an unnamed trade.
“Successfully, these tokens had been getting used as collateral on an trade. Then, the trade determined that it was not the place they wished to take care of anymore, for no matter motive,” Mullin mentioned, including:
“So, what occurred was mainly the positions had been taken over by the trade that took the collateral and began promoting, which brought on a cascade of promote stress and compelled extra liquidations.”
Mullin mentioned Mantra stays dedicated to addressing the scenario as transparently as doable.
“We’re not working from something,” he mentioned, including that the incident was a “very unlucky scenario.”
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