Can OM Recover? Looking at Possibilities from the Team's Current Plan

The OM token, native to the MANTRA Chain, has taken center stage in the crypto world—not for a rally, but for a major crisis followed by a dramatic supply cut. After experiencing a 90% price collapse within an hour on April 13, 2025, MANTRA’s founder John Patrick Mullin responded with a bold gesture: the permanent burn of his 150 million OM token allocation.

This move, although symbolic in nature, is also part of a strategic tokenomics shift designed to restore investor confidence and possibly ignite a long-term recovery. But the question remains: can OM recover from here?

The Aftermath of the April OM Mantra’s Crash

OM’s steep drop began after an unusual deposit of 40 million tokens into the OKX exchange, which was linked to addresses allegedly tied to insiders. This prompted mass liquidations across trading platforms, shaking investor trust and triggering concerns about centralized token ownership and poor governance—issues highlighted by Gracy Chen, CEO of Bitget, in recent commentary.

As panic spread, the price of OM plummeted to just under $0.50, wiping out over 90% of its value in under an hour. The damage left OM in a descending channel, with minimal signs of technical recovery.

The OM Mantra Burn Strategy: Real Change or Symbolism?

Token burns are not new in crypto. In fact, major players like Binance (BNB) and Ethereum (ETH) have used supply reduction as a deflationary mechanism to reward long-term holders. Binance, for instance, conducts quarterly BNB burns based on trading volume, while Ethereum's EIP-1559 upgrade introduced a burn on base transaction fees.

MANTRA seems to be following this playbook. On April 29, 2025, the 150 million OM tokens held by Mullin—previously locked to secure the MANTRA Chain mainnet—will be sent to a burn address, making them permanently unrecoverable.

Also read Mantra Burns 150M OM Tokens! Plans to Burn 150M More

Moreover, the team has signaled that another 150 million token burn is under discussion with ecosystem partners, potentially doubling the supply cut to 300 million OM. If fully executed, this would shrink OM's total supply from 1.82 billion to 1.52 billion, a significant 16.5% reduction.

Notably, the burn will also lower OM’s staking ratio from 31.47% to 25.30%, increasing staking rewards for remaining participants. The logic? With fewer tokens staked, each staker receives a higher share of the rewards.

OM Mantra Technical Picture: What the Charts Say

At press time, OM is trading near $0.529, struggling to hold psychological support around $0.50. It previously bounced back 4% after the burn announcement but has failed to break resistance at $0.5529, which was once strong support.

Source: Coinmarketcap

If bearish momentum continues, OM may retest the $0.48 support zone—a level that coincides with past consolidation periods. Should it break this level, the next key support lies near $0.46. On the upside, OM needs to reclaim $0.55 with volume to aim for $0.60 again.

For now, OM remains in a short-term corrective phase, and the direction it takes near the $0.50 level could signal either a bottom formation or a deeper decline.

Also read What Did JP Mullin Say About OM's Tokenomics? A Statement to Face FUD

Can Bitcoin’s Strength Lift OM?

Interestingly, Bitcoin recently surged to $88,500, sparking bullish sentiment across many altcoins. However, OM hasn’t shown significant correlation, highlighting that its recovery is unlikely to depend solely on macro market moves. Instead, it must be driven by project-specific catalysts, such as:

• Transparency improvements in governance and token allocations
  
   
• Continued strategic burns to reduce sell pressure
  
   
• Rebuilding community trust via regular, verifiable updates
  
   

There are precedents. Tokens like LUNC (Luna Classic) also saw partial revivals after massive crashes—although those cases required extensive rebranding and ecosystem overhauls.

What’s Next for MANTRA?

The OM token’s future now hinges on two critical paths:

1. Follow-through on the full 300M burn initiative, including strong on-chain transparency; and
2. Structural improvements in ecosystem governance to avoid repeat incidents.
   
    

Whether OM can reach its former highs depends on more than just tokenomics—it will require long-term trust, a clear roadmap, and measurable on-chain activity growth.

For now, the burn is a first step. But if MANTRA wants to rise from the ashes, it will need more than fire—it will need focus.

Also read Taking a Look at Mantra's New Dashboard: A Place to Keep Track of OM

FAQs

1. What does burning tokens mean in crypto?
Burning tokens means sending them to an address that no one can access, permanently removing them from circulation to reduce supply and potentially increase value.

2. Why did OM’s price crash so drastically?
The crash was reportedly triggered by a large token deposit on OKX linked to internal addresses, causing widespread liquidations and panic selling.

3. Is the token burn enough to restore investor confidence?
While the burn is a positive gesture, real recovery will require stronger governance, transparency, and ongoing engagement with the community.

4. Can OM recover in 2025?
Recovery is possible but depends on consistent execution of burn strategies, improved trust, and broader crypto market conditions.

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