Latest news with #JohnPatrickMullin
Business Mayor
22-04-2025
- Business
- Business Mayor
Mantra says CEO has begun the process of burning his 150M OM tokens
Mantra founder and CEO John Patrick Mullin has started unstaking 150 million of his Mantra (OM) tokens in preparation for sending them to a burn address in an attempt to restore the token's value by tightening supply. Mantra announced on April 21 that the unstaking process had begun, and would be completed by April 29, at which point Mullin's Mantra (OM) tokens will be sent to the burn address and permanently removed from circulating supply. Mullin said it was a 'first step in rebuilding trust with the community, but far from the last.' Mantra said it was also in talks with 'key ecosystem partners' about burning a further 150 million OM to bring the total burn amount to 300 million. With 150 million fewer OM, Mantra's total supply will decline to 1.67 billion, and its number of staked tokens will drop by over 26% from 571.8 million OM to 421.8 million OM. Returns will also be boosted: 'This strategic burn will lower the bonded ratio from 31.47% to 25.30%, resulting in an increase in staking APR,' Mantra said. Token burn initiative follows OM price collapse Two days after Mantra's rapid 90% price collapse on April 13, Mullins posted to X that he intended to burn all of the staked tokens he was allocated at the blockchain's mainnet genesis in October. These vested 'team tokens' were due to be unlocked starting in 2027. He also ran a poll on X about the proposed burn of his tokens, with alternate options such as extended vesting or unlocking tokens at milestones — as a 'temperature check of people's thoughts.' The poll had attracted almost 9,000 votes at the time of writing, and a number of commenters criticized it as an attempt to reverse course on the burn commitment. The burn is connected to an 'OM Token support plan' Mantra announced following the price crash, which will also feature a token buyback. Mullin said the buyback program was also 'well underway.' Mantra also released a tokenomics dashboard to increase transparency as it seeks to regain the trust of the community.
Forbes
21-04-2025
- Business
- Forbes
Crypto's Fresh $5 Billion Disaster
This is a published version of our weekly Forbes Crypto Confidential newsletter. Sign up here to get Crypto Confidential days earlier free in your inbox. THE OM COLLAPSE Just last week, Mantra's OM token looked great: up over 800% year‑on‑year, a fresh $108 million ecosystem fund and a $1 billion Dubai real‑estate deal (Mantra is a blockchain for tokenizing physical assets like buildings and art) in the pipeline. Then, over last Sunday, its price cratered more than 90% from around $6.3 to below $0.5, erasing over $5.4 billion in value and sending traders hunting for villains. The problem wasn't a clever exploit. Blockchain analysts flagged 17 wallets moving 43.6 million OM (about $227 million) to exchanges Binance and OKX in the days leading up to the crash. Rumors of OTC fire‑sales at half price fueled the panic. Once the selling started, liquidity vanished. Traditionally thin Sunday order books couldn't absorb the flood, triggering forced liquidations of leveraged positions. By the time the cascade stopped, veteran traders were comparing the mess to Terra's LUNA collapse. CEO John Patrick Mullin denied insider sales, blamed 'reckless forced closures' by centralized exchanges and promised a token buyback. Exchange OKX pointed to MANTRA's suspicious token economics changes and concentrated ownership. A high‑profile investor, Nomura-backed Laser Digital, also jumped on X to deny it was among the sellers after an analytics platform apparently mistagged its wallets. THE NEW ORDER OF CRYPTO LENDING The crater BlockFi, Celsius & Co. left in crypto credit hasn't stayed empty. In centralized crypto lending, the throne now belongs to Tether, Galaxy Digital and Ledn—a trio that controls nearly 90 % of what remains of centralized lending. The bigger shift, however, is on‑chain: DeFi protocols now originate just over half of all crypto loans ($19.1 billion of the market's $36.5 billion total), turning smart contracts into the sector's chief credit officers. Wall Street is circling too: Cantor Fitzgerald is preparing to wade into bitcoin financing. Read more. TEMPERATURE CHECK ON TRUMP'S CRYPTO GAMBIT On the campaign trail, Donald Trump vowed to make the U.S. the world's undisputed crypto super‑power. Four months into his second term, the sprint is on: SAB 121 is gone, freeing banks from punitive capital rules on digital‑asset custody; April's bill scrapped the nightmare cost‑basis paperwork for DeFi; and the DOJ has shuttered its crypto task force, vowing to chase scammers, not software. Beyond holding a variety of crypto tokens in a strategic reserve and putting an end to prosecutions of industry players, the administration is leaning into bipartisan efforts to craft rules for dollar‑pegged stablecoins. So far the bet is paying off: bitcoin is up almost 30% since election night, and broader crypto prices have held firm despite Wall Street chop. Read more. ELSEWHERE: Donald Trump's 29-Year-Old Crypto Guru Lays Out The President's Plans For Regulating Crypto And Rolling Back A Biden-Era Crackdown [Fortune] The Analyst Who Predicted Crypto's Latest $5 Billion Collapse [The Street] Kraken Expands Beyond Crypto With Commission-Free Trading Launch [Reuters]
Yahoo
14-04-2025
- Business
- Yahoo
Mantra Token Plummets 90%: Team Blames Exchange Liquidations as Market Cap Shrinks to $683 Million
On Sunday evening, Mantra's OM token experienced a catastrophic crash, plunging more than 90% in a matter of hours and triggering over $71.8 million in liquidations. The token, which was trading around $6.30 yesterday, now sits at approximately $0.70, with its market capitalization drastically reduced from nearly $6 billion to just $683.09 million. Source: CoinMarketCap Mantra Price In a significant development, major cryptocurrency exchange OKX has released an official statement regarding the OM token crash. The exchange noted that the initial price drop occurred around 2:28:32 am (UTC+8) on April 14, with "a rapid price drop and increased trading volume first appearing on other exchanges, followed by a sharp drop of more than 80% in the entire market in a short period of time." OKX's analysis indicates potential structural issues with the token, stating that "based on the on-chain public data and the internal data of the exchange, the project token economic model has undergone major changes since October 2024." The exchange also revealed that "since the beginning of March, multiple on-chain addresses with similar operation modes have experienced large deposits and withdrawals from various exchanges." In response to these risks, OKX has "adjusted a series of risk control parameters" and added risk warnings on the OM token page. The exchange emphasized that "recent market risks are relatively high, and some tokens may have significant changes in token supply, which will have significant fluctuations and impacts on token prices." Mantra's co-founder, John Patrick Mullin, quickly addressed the situation through the project's official channels, attributing the collapse to "reckless forced closures initiated by centralized exchanges on OM account holders" rather than any action by the team. "The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice," Mullin stated in a post on social media platform X. He pointed out that the incident occurred "during low-liquidity hours on a Sunday evening UTC (early morning Asia time)," suggesting "a degree of negligence at best, or possibly intentional market positioning taken by centralized exchanges." According to data from Coinglass, the crash resulted in more than $74.7 million in liquidations over the past 24 hours, with ten positions each experiencing liquidations exceeding $1 million. Source: Coinglass As the price collapsed, speculation of a potential "rug pull" - where developers abandon a project after withdrawing funds - began circulating among traders. Market investor Gordon compared the situation to previous crypto disasters, writing: "[The] team needs to address this or OM looks like it could head to zero, biggest rug pull since LUNA/FTX?" Mantra executives have firmly denied these allegations, with Mullin providing verification addresses for the team's token holdings to prove they remain locked as scheduled. "To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA's investors selling tokens. Tokens remain locked and subject to the published vesting periods," the team stated in their community update. Arkham Intelligence data indicates Mantra DAO had burned approximately 21 million OM tokens in separate transactions on April 2, though this appears unrelated to the current crisis. Sign in to access your portfolio
Express Tribune
14-04-2025
- Business
- Express Tribune
Mantra crypto crash: OM token plunges 90%, crashes from $6 to $0.37 in hours
Listen to article The OM token issued by crypto project MANTRA collapsed over 90%, triggering turmoil among investors and sparking unverified allegations of insider selling. The token fell from $6.3 to as low as $0.37 within hours, wiping out an estimated $5 billion in market capitalisation. OM had peaked at $9 earlier this year, and as of Monday, had recovered slightly to above $1. MANTRA, which specialises in real-world asset (RWA) tokenisation, denied any involvement from its team, blaming the plunge on 'reckless liquidations' by centralised exchanges. 'This was not our team. We are looking into it and will share more details,' the project's official X account posted. Co-founder John Patrick Mullin added in a follow-up statement that the crash was triggered by the sudden closure of positions on an undisclosed exchange during low liquidity hours. Mullin suggested the actions taken by the exchange 'lacked oversight' and harmed both the project and retail investors. 'We're still investigating, but this is unprecedented,' he said during a live community session on X. Critics online, including blockchain analyst ZachXBT, expressed scepticism over the explanation, citing the rapidity and magnitude of the price drop. Some accused the project of executing an off-market dump and then deleting its Telegram group. Investors have called for legal accountability and greater transparency. The crash has drawn comparisons to Terra Luna's collapse in 2022. MANTRA is regulated in Dubai under the Virtual Assets Regulatory Authority (VARA) and has previously announced partnerships with Google Cloud and DAMAC Group. The project said a community discussion will be held in the coming days, though concerns over centralised exchange control and DeFi risk continue to mount.
Express Tribune
14-04-2025
- Business
- Express Tribune
China halts rare earth exports
Workers transport soil containing rare earth elements for export at a port in Lianyungang, in China's Jiangsu province, in October 2010. | REUTERS Listen to article China has halted exports of critical minerals and rare earth magnets in response to rising trade tensions with the United States, threatening global supply chains for electric vehicles, semiconductors and military hardware. The move comes as part of Beijing's retaliation against US President Donald Trump's new tariffs introduced this month. Industry sources said that Chinese customs have blocked the shipment of six heavy rare earth elements and associated magnets from ports across the country. Exporters must now apply for special licences to ship the materials abroad, but China has not finalised a process for granting the permits. This has triggered fears of long-term disruption among global manufacturers who rely on Chinese supply. 'The timing and depth of the crash suggest that a very sudden closure of account positions was initiated without sufficient warning or notice,' said John Patrick Mullin, co-founder of MANTRA, a real-world asset tokenisation firm also affected by the rare earth shortage. Rare earth magnets are essential for electric motors in cars, drones, and advanced military systems. China currently accounts for over 90% of global magnet production and nearly all heavy rare earth refining, including materials like dysprosium oxide, used in high-temperature applications. 'Does the export control or ban potentially have severe effects in the US? Yes,' said Daniel Pickard, who chairs the US government's critical minerals advisory committee. Michael Silver, CEO of American Elements, said his firm had stockpiled materials ahead of the dispute, but warned that prolonged delays in licensing could still strain global inventories. While the Chinese Ministry of Commerce has not officially commented, the new export rules are being enforced inconsistently across various ports. Some ports are still allowing exports of magnets with negligible amounts of heavy rare earth content—so long as shipments are not destined for the United States. American defence contractors are especially concerned. 'Drones and robotics are widely considered the future of warfare,' said MP Materials CEO James Litinsky. 'And based on everything we are seeing, the critical inputs for our future supply chain are shut down.' MP Materials runs the only operational rare earth mine in the US, Mountain Pass in California, and is set to launch magnet production for General Motors by year-end. China's latest curbs echo a brief 2010 embargo imposed on Japan during a diplomatic dispute. Many Japanese firms maintain rare earth stockpiles to this day, but most American companies do not, citing costs. The impact of China's move may be disproportionate. Rare earth magnets represent a minor portion of Chinese exports, but their importance in US and European manufacturing means even limited disruptions could ripple across industries. Xi Jinping previously signalled the strategic weight of the rare earth sector during a 2019 visit to JL Mag's factory in Ganzhou, a key supplier to Tesla and BYD. Field visits last week to Jiangxi province, home to the world's richest heavy rare earth deposits, suggested some mining activity may have resumed after a years-long pause due to pollution concerns. The export freeze, now in full effect, underscores how geopolitical tensions are reshaping global access to materials critical to both energy transition and national security.
