MANTRA Token Rebounds After Crash, Co-Founder Promises Truth

MANTRA’s native token experienced a partial recovery on Tuesday after a sudden drop over the weekend erased over 90% of its value. The token, which was trading above $6.30 on Sunday, fell sharply to around $0.52 within hours. 

On Tuesday afternoon, prices reached approximately $0.82, climbing more than 50% earlier in the day before settling around a 27% gain at press time. MANTRA is currently trading at $0.7672, based on Coingecko data.

The rapid fall led to widespread speculation across the digital asset space. MANTRA stated on social media that the issue stemmed from large-scale forced liquidations. The team claimed these actions were unrelated to the project’s performance or internal operations. No external hack or technical failure has been confirmed.

Co-Founder to Release Report and Launch Buyback

MANTRA’s co-founder John Patrick Mullin said that a detailed report will be released to explain what occurred. “We are preparing a full breakdown of what happened starting early Monday morning in Asia. The data will tell the full story—on-chain and off-chain,” Mullin said in a post.

He also mentioned upcoming measures aimed at rebuilding trust. “Once the report is public, we’ll announce a token buyback and a reduction in supply 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 Resurface Amid Market Uncertainty

Following the crash, earlier concerns about MANTRA’s token supply surfaced again. Some critics have accused the team of holding too much of the token’s float, which may have made the market more fragile during price swings. Mullin addressed the matter directly, stating, “We do not manipulate the price, and we’ve been transparent about how the token is structured.”

Nomura’s Laser Digital, an investor in MANTRA since 2024, released a statement refuting claims that early backers triggered the drop. “There have been no large withdrawals or coordinated sales from our side,” the company said, adding that its position in the project remains unchanged.

DeFi Community Warned About Risks of Hype

The collapse has led to broader questions within the decentralized finance community. Jean Rausis, co-founder of SMARDEX, said the event highlights how vulnerable some new blockchain projects can be. 

“This is a reminder that projects launched with aggressive marketing and no history are often the most fragile when pressure hits,” he said.

Rausis compared MANTRA’s issues to the steadier track record of Ethereum.

“Ethereum isn’t moving fast in price, but it’s still the backbone of real development in this space. It’s not just about speed or hype—it’s about lasting value,” he noted.

The MANTRA team has yet to publish the promised report. Until more information is released, market participants remain cautious.