MANTRA token recovers after crash, co-founder promises

Mantra's native token partially recovered on Tuesday after a sudden drop over the weekend wiped out more than 90% of its value. The token, which traded at above $6.30 on Sunday, plummeted to around $0.52 within hours On Tuesday afternoon, the price reached around $0.82, up more than 50% earlier in the day before stabilizing at a gain of around 27% at press time. MANTRA is currently trading at $0.7672, based on Coingecko data. The rapid decline has led to widespread speculation across the digital asset space. MANTRA stated on social media that the problem stems from widespread forced liquidation. The team claims these actions are not related to the project's performance or internal operations. No external hacks or technical failures have been confirmed. The co-founder will publish the report and launch the buyback program MANTRA co-founder John Patrick Mullin said a detailed report would be released to explain what happened. "We are preparing a full analysis of what happened starting early Monday morning in Asia. The data will tell the whole story—on-chain and off-chain," Mullin said in a post. He also mentioned upcoming measures aimed at rebuilding trust "Once the report is made public, we will announce token buybacks and supply reductions to help stabilize the project and move forward with a long-term plan," he wrote. No timeline or amount was shared regarding the proposed actions. Previous allegations recur amid market turmoil After the collapse, earlier concerns about Mantra's token supply resurfaced. Some critics have accused the group of holding too many circulating tokens, which could make the market more fragile during price fluctuations. Mullin addressed the issue directly, stating, "We don't manipulate prices and we've been transparent about how the token is structured." Nomura's Laser Digital, an investor in MANTRA since 2024, issued a statement refuting claims that early backers caused the drop "There were no major withdrawals or coordinated sales on our part," the company said, It added that its position in the project remains unchanged. DeFi community warned of risks of hype The collapse has led to broader questions in the decentralized finance community. Jean Rausis, co-founder of SMARDEX, said the event highlights the vulnerability of several new blockchain projects "This is a reminder that projects launched with aggressive marketing and no history are often the most fragile projects under pressure," he said. Rausis compared Mantra's problems to Ethereum's more stable performance. "Ethereum is not going up fast, but it's still the backbone of real growth in this space. It's not just about speed or hype—it's about long-term value," he noted. The MANTRA team has yet to release the promised report. Until more information is available, market participants remain cautious.