Mantra CEO Pledges to Burn Personal Token Allocation Amid Crash Fallout

In a dramatic move to restore investor confidence, JP Mullin, CEO of the Mantra ecosystem, announced his intention to burn his entire allocation of 772,000 OM tokens. The pledge follows mounting criticism over the token’s recent collapse and allegations of insider activity tied to over-the-counter (OTC) sales.

The decision was made public on April 15 via a post on X, where Mullin responded to community calls for accountability. One user had suggested delaying the project’s upcoming token unlocks, originally scheduled for April, to demonstrate long-term commitment.

Mullin clarified that Mantra’s team tokens are locked until April 2027, 30 months after the project’s mainnet launch in October 2024. He went further, stating he would burn his personal allocation entirely, leaving it to the community to decide whether he should earn it back in the future.

“Rebuilding Trust” in Wake of $5B Wipeout

The announcement comes after OM, the native token of the Mantra protocol, plunged more than 90% from a recent high, wiping out over $5 billion in market cap in just three days. The crash, attributed to low liquidity and cascading liquidations, has placed the project under intense scrutiny.

Mullin said the goal of the burn was to “rebuild trust” with the community. He also mentioned he was open to placing the tokens in a community-controlled escrow or governance mechanism, rather than destroying them outright.

Crypto influencer Ran Neuner weighed in, warning that the burn might be counterproductive: “Strong incentives are necessary to keep teams motivated.” Mullin countered that this was strictly a personal decision and not reflective of the entire team’s strategy.

A screenshot shared by Mullin shows his 772,081 OM tokens fully staked on the Fluxtra platform.

Allegations of Insider Sales Resurface

Controversy around Mantra intensified further after YouTuber and scam investigator Coffeezilla published a recap of his interview with Mullin. In the video, Coffeezilla alleged that the Mantra team sold between $25 million and $45 million in tokens via OTC, offering discounts between 30–50%.

He further claimed that up to $10 million of the proceeds were used to buy back OM, describing the move as potential price manipulation. Mullin denied the allegations, stating the sales were legitimate and that the buybacks were intended to support the market during instability.