What you need to know:
- Mantra is restructuring its operations after a difficult year marked by the collapse of its OM token and prolonged market pressure.
- The company is cutting jobs in several departments to reduce costs and improve capital efficiency.
- The price of OM token fell by more than 90%, from an all-time high in early 2025 to a fraction of its peak.
Mantra, the blockchain initiative focused on the tokenization of real-world assets (RWA), is undergoing a massive restructuring as its original token, OM, lost almost 90% of its value. This development came after the difficult market environment affected the company’s financial situation. This was announced by the CEO, John Patrick Mullin.
OM token collapse and market pressure
The challenges facing Mantra have largely been driven by the sharp decline in the price of its OM token, which traded at a high of around $8.99 in early 2025 before falling below $0.60, wiping out nearly 99% of its value.
The group had previously attributed the crash to systemic problems of aggressive leverage and liquidations on centralized exchanges that amplified the price decline during times of low liquidity. These conditions created what Mantra leadership labeled as “systemic risk” that was bigger than the company itself.
Analysts and market commentators tend to point to a lack of liquidity, liquidations between exchanges and sudden surges in deposits of large amounts of OM token, while arguments between community members and researchers tend to create a degree of conflict between exchanges and project insiders.
Also Read: OKX Blames OM Holdings Transparency Mantra in Ongoing Litigation
Operational changes and workforce reductions
To alleviate pressure on its financial situation, CEO Mullin announced that Mantra would undergo a transformation to an optimized, more capital-efficient model. This would include cutting jobs in business development, marketing, human resources and other similar departments. This would allow the company to save capital.
Mullin took personal responsibility for the strategic actions taken prior to the restructuring, as evidenced by his apology to employees. He understood the difficulty of the situation.
Exchange relations and broader industrial tension
This restructuring plan comes against the backdrop of strained relations with certain cryptocurrency exchanges. For example, in early December, Mullin called on holders of the OM token to leave the OKX exchange due to incorrect data about the migration process, a move that the OKX exchange rejected, citing market manipulation before the April crash.
These tensions highlight the challenges in the relationship between protocol teams and trading platforms, especially in cases where there are significant price changes.
Also read: MANTRA (OM) signals a potential rebound as technicals point towards $0.34
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