Whale Transfers 1.7M OM to Binance as Mantra Announces 150M Token Burn – Will Price Crash or Recover?

Andrew Chen
MANTRA

Mantra, a prominent player in the cryptocurrency space, is making headlines with a significant move to bolster its token’s value. John Patrick Mullin, CEO and founder, recently announced the removal of 300 million OM tokens from the total supply, signaling a strong commitment to recovery following a recent price downturn. This strategic decision involves an immediate burn of 150 million OM, currently being unstaked and slated for execution by April 29th. Furthermore, discussions are underway to potentially burn an additional 150 million OM, which could substantially reduce team and ecosystem allocations.

If fully implemented, this aggressive token removal would shrink OM’s total supply from 1.82 billion to 1.67 billion. The anticipated reduction in both circulating and staked tokens, exceeding 26%, is projected to significantly enhance staking rewards, with the Annual Percentage Rate (APR) expected to rise as the bonded ratio decreases from 31.47% to 25.30%. This initiative comes after OM experienced a dramatic 90% price crash on April 13th, plummeting from $6.30 to below $0.55 within hours.

Whale Activity Sparks Sell-Off Concerns Amid Recovery Efforts

While Mantra’s leadership is pushing forward with its recovery plan, a significant whale wallet has emerged as a point of interest and potential concern. Identified as 0x5AC, this wallet reportedly accumulated 2.9 million OM last month at an average price of $6.45, representing an investment of approximately $18.7 million. However, recent on-chain data reported by The Data Nerd reveals that this same wallet transferred 1.724 million OM, valued at around $1 million at the time, to the Binance exchange just two days ago. This substantial transfer has ignited speculation within the community about a possible sell-off, potentially dampening the positive impact of the announced token burn.

Considering the current trading price of OM around $0.52, this whale’s earlier investment would now be facing a staggering loss of approximately $10.1 million if liquidated entirely at these prices. The wallet still holds 1.173 million OM, currently valued at roughly $595,000. The timing of this whale’s activity, coinciding with Mullin’s announcement, has introduced an element of uncertainty into the market’s response to the recovery strategy.

Also Read: Insider Panic or Protocol Flaw? MANTRA’s $5.5B OM Crash Tough Questions

Community Divided on OM’s Recovery Prospects

The market’s reaction to Mantra’s token burn announcement has been mixed. OM is currently trading around $0.52, showing a modest 0.5% increase over the last 24 hours. Notably, the announcement triggered an 88% surge in trading volume, indicating heightened investor interest and activity. Popular crypto analyst Moon Jeff has expressed a bullish outlook, viewing the recent dip as a buying opportunity and predicting a near-term target of $1, with potential for even greater gains in the future.

Conversely, critics remain skeptical about the long-term effectiveness of the burn. Concerns have been raised regarding the ongoing unlock of approximately 4 million OM tokens every few weeks, with a significant 45% of the total supply still locked. CryptoNinjas argues that these continuous unlocks could undermine the impact of the token burn, suggesting that the team’s actions may be too late to initiate a robust recovery, with charts indicating a potential “slow bleed” rather than a sharp rebound. The interplay between the strategic tokenomics adjustments and the behavior of large holders will be crucial in determining OM’s trajectory in the coming weeks.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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