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Mantra Slashes Staff and Restructures Following ‘Brutal’ OM Token Collapse

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Mantra is restructuring after what its management described as one of the vital tough intervals within the undertaking’s historical past, following a extreme collapse in its OM token and months of sustained market stress which have pressured the corporate to reassess its value construction and priorities.

On Wednesday, Mantra CEO and co-founder John Patrick Mullin announced that the blockchain undertaking would cut back its workforce and shift to a leaner working mannequin because it heads into 2026.

The choice comes after a yr marked by aggressive growth, a brutal token drawdown, and a protracted downturn in market sentiment towards real-world asset tokenization.

Mantra Tightens Operations Token Collapse and extended market stress

In a press release shared publicly, Mullin stated the restructuring would contain job cuts throughout a number of groups, with enterprise growth, advertising and marketing, HR, and assist roles amongst these most affected.

He claimed it was achieved as a response to the truth of matching expenditure with short-term realities because the value base of Mantra couldn’t be sustained within the face of the deteriorating market situations.

Mullin added that the corporate would now be directed to disciplined execution, tightening of assets, and capital effectivity because it goals at stabilizing and rebuilding.

Going into 2024 and early 2025, Mantra had large development plans and heavy investments to scale its RWA infrastructure, its chain, and its general ecosystem.

Such effort assisted in making the undertaking one of many high Layer-1s that consider tokenized real-world property.

However, Mullin stated a mix of unfavorable occasions in April 2025, intensifying competitors, and a protracted market downturn finally pressured the corporate to vary course.

On April 13, the token fell from around $6.30 to below $0.50 during low-liquidity weekend buying and selling, wiping out greater than $6 billion in market capitalization inside 24 hours, and triggered widespread concern throughout the DeFi sector.

Mantra denied any wrongdoing on the time, attributing the crash to pressured liquidations by a big token holder on a centralized change.

Source: CoinGecko

CoinGecko knowledge shows that OM had reached an all-time high of $8.99 in February 2025 earlier than falling to as little as $0.59 by mid-April and stays buying and selling roughly 99% under its peak.

Mantra Seeks Fresh Start After Cuts Back

In the aftermath of the collapse, Mantra took a number of steps geared toward restoring confidence, with Mullin announcing plans to burn 150 million OM tokens allotted to him at mainnet genesis, with the unstaking course of accomplished later in April 2025.

A token buyback program and a public tokenomics dashboard have been additionally launched as a part of a broader effort to enhance transparency.

The undertaking’s challenges have been compounded later in 2025 by a public dispute with crypto change OKX over the timing and construction of OM’s token migration.

Mullin accused the change of publishing incorrect migration dates and urged users to withdraw tokens and follow official Mantra channels instead. The dispute added to uncertainty for holders already shaken by the April collapse.

Against that backdrop, Mullin stated the restructuring is designed to increase Mantra’s runway and refocus the corporate on execution quite than growth.

As the corporate seems to the longer term, Mullin defined that Mantra could be extra disciplined and will ship quicker and push itself ahead right into a sustainable and worthwhile future.

He stated the corporate stays dedicated to its RWA technique and believes a leaner construction will go away it higher positioned to navigate market volatility and ship on its long-term imaginative and prescient as the subsequent section of crypto adoption unfolds.

The publish Mantra Slashes Staff and Restructures Following ‘Brutal’ OM Token Collapse appeared first on Cryptonews.

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