MANTRA Launches $25M Token Buyback, But Community Distrust Persists

August 27, 2025 – MANTRA, a Layer-1 blockchain focused on real-world asset (RWA) tokenization, has announced its first major token buyback program. The $25 million initiative, backed by strategic investors, is designed to restore confidence in $OM after months of volatility. Yet the move has stirred mixed reactions, with many community members still reeling from April’s devastating crash.

Buyback Program Details

The buyback will be carried out programmatically over several months. Independent trading firms will execute recurring market purchases on leading centralized exchanges. Tokens will then be withdrawn, migrated to MANTRA’s mainnet, and staked with validators.

At current prices, the program could absorb about 110 million $OM, roughly 10% of supply. The effort coincides with a $20 million investment from InveniamIO, bringing institutional commitments to $45 million. The plan also aligns with MANTRA’s EVM-compatible mainnet launch in September, increased staking rewards of 18%, and ecosystem incentives. Nearly 250 million $OM (28% of supply) has already migrated to the mainnet, with plans to fully phase out the ERC-20 version.

Following the announcement, $OM rose 7% to trade near $0.236, with a market cap of about $210 million and daily volumes above $45 million.

Lingering Anger After April Crash

Despite positive headlines, resentment lingers from April 2025’s 90% crash, which erased $6 billion in market cap in 24 hours. The collapse was driven by cascading liquidations of leveraged positions on centralized exchanges.

CEO John Patrick Mullin blamed exchange policies, but critics accused insiders of selling before the crash. Rumors of manipulation spread as Arkham Intelligence misattributed wallets tied to large sales. Community forums exploded with claims of insider dumping, rug-pull fears, and broken tokenomics.

Although Mullin burned his 150 million $OM allocation and pledged further burns, promises of a 300 million $OM reduction and buybacks took months to materialize. Frustrations grew when funds moved from buyback wallets back to exchanges, raising new doubts.

Can Trust Be Rebuilt?

While MANTRA has stabilized, the token remains far from its $1 highs. Inflation adjustments, designed to accelerate migration, have been criticized as dilutive. Many retail holders believe the team has focused on institutional deals at their expense.

Supporters call this “comeback season,” citing institutional backing and ecosystem growth. But skeptics still label $OM a “scam coin” and demand faster burns, more transparency, and stronger value capture.

Whether the buyback becomes a turning point or another short-term pump remains uncertain. For now, MANTRA faces the difficult task of proving that its RWA mission can outlast the community’s lingering distrust.