Mantra Restructures, Cuts Staff After OM Token Collapse
Update Jan. 14, 2:20 pm UTC: This article has been updated to add comments from Manta CEO John Patrick Mullin.
Mantra, a blockchain project focused on real-world assets (RWAs), is restructuring its operations after what its leadership described as the most difficult year in the company’s history, marked by a sharp token collapse and prolonged market pressure.
On Wednesday, Manta CEO John Patrick Mullin announced that the company would transition to a leaner and more capital-efficient structure following a period of expansion. The changes include job cuts across multiple teams and a streamlining of operations to better match near-term market conditions.
“I take full accountability for these decisions and for the path that led us here,” Mullin wrote. “I know this is an incredibly challenging situation, particularly for those directly impacted, for their families, and for everyone at MANTRA. I’m especially sorry to those leaving us.”
Mullin said the restructuring was driven primarily by a broader strategic reset rather than a narrow focus on cost reduction.
He told Cointelegraph that while downsizing would lower expenses and extend runway, the core motivation was to sharpen execution and concentrate resources on areas where Matra sees the strongest long-term opportunities.
“This hasn’t changed our core RWA strategy in the slightest. If anything, we are doubling down on it,” Mullin told Cointelegraph, adding that they are prioritizing their layer-1 chain, mantraUSD, and Mantra Finance.
Token collapse and prolonged market pressure
The restructuring follows a steep decline in Mantra’s OM token that began early last year.
According to CoinGecko, the OM token reached an all-time high of $8.99 on Feb. 23, 2025, before collapsing sharply to $0.59 by April 15. It remains around 99% below its previous high before the collapse.
On April 30, Mantra linked the OM crash to aggressive leverage policies on centralized exchanges, warning that liquidation cascades posed systemic risks to crypto projects.
At the time, Mullin said that the incident was bigger than Mantra and called on exchanges to reassess how leverage is applied to native tokens.
Following the crash, Mantra announced a series of governance and transparency measures, including validator decentralization efforts, the launch of a real-time tokenomics dashboard and the burning of 150 million staked OM tokens to reduce supply.
Despite those measures, the prolonged downturn continued to weigh on the project’s finances. Mullin acknowledged that Mantra’s cost base had become unsustainable given current market conditions, prompting the decision to cut staff and narrow its focus.
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Exchange tensions and a narrower path forward
The restructuring also comes after months of strained relations between the company and crypto exchange OKX.
On Dec. 8, Mullin urged OM holders to withdraw their tokens from OKX, alleging inaccurate information related to a token migration. OKX disputed the claims, saying it had evidence suggesting coordinated market activity before the April crash.
Mullin said the layoffs disproportionately affected business development, marketing, human resources and other support functions, as the company concentrates resources on core execution.
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