Trust issues spawned by the crash are being reflected in sentiment outlook, as most investors remain skeptical. While the core management of the Mantra project has attributed the collapse to “forced liquidations by an exchange,” this narrative appears to be at odds with views held by the community. Users on the platform reportedly subscribe to the notion that the so-called liquidation event was an instance of “insiders dumping tokens.
” Compounding the doubts of the user community is a critical question that they are raising: why was Mantra, allegedly, the only coin in the entire market at that time that was subject to such extensive liquidation? “ This gaping hole between explanation and perception captures the erosion of confidence surrounding the project.
Amidst Crisis, Community Set to Be Addressed by the CEO
Against a backdrop of shambolic collapse, cited as the result of bearish woes, Mullin has now received the opportunity to shift trust in the brand by detailing the design thoughts of the company’s products to the users, as he was invited to discuss at TOKEN2049 in Dubai, alongside other appearing speakers of the event.
This major industry conference is currently underway, running from April 30 to May 1. Mullin’s participation comes after a prior interview with crypto news, before the recent downfall, showcasing that he had been participating in media interactions before the realization of the topical downturn commenced.
The community and market watchers are rather excited to hear his speech during TOKEN2049. Updates are expected from Mullin on multiple fronts. These include updates about “new ecosystem developments” pertaining to the Mantra project, updates about “his token burn” projects, as well as, very importantly, “I expect him to urge the crypto community to work together to proactively guard investors against these mandatory liquidations.
” This indicates a possible Mantra call to unite the industry to prevent other projects from having to endure such phenomena in the future, illustrating how deeply the event impacted Mantra.
Mantra’s Proposed Solutions Have Some Doubts Surrounding Them
To this end, and in doing so, attempting to restore the value of the token, Mantra has, as expected, offered one or more other options aimed publicly as solutions to increase the OM price. Besides Mullin’s personal token burn projects, the company is going to burn these 300 OM tokens from the company’s treasury.
Token burn is a form of a process where an entity permanently removes a certain number of tokens within the circulatory economy. Reducing the number increases the total supply but could increase the remaining tokens in circulation if demand can’t keep up or simply remains constant.
Moreover, Mantra is rumored to be looking to initiate an extravagant buyback plan totaling $109 million. A buyback, as defined in Mantra’s case, refers to when a company spends their capital to buy their tokens back from the open market. This is done primarily for the purposes of controlling the supply of the tokens and supporting the price of the token by absorbing selling pressure.
Complementing these financial strategies, the staff has promised “more transparency,” which suggests they need to improve trust by modifying the information provided to the community and the investors.
Regardless of these proposed strategies and the address from the CEO scheduled on the calendar, some market analysts are still considering this perplexing. Within the analysis was a critique that strongly suggests the opposite will happen, whereby the burns, buybacks, and pledges for increased transparency will remain stagnant and unresponsive to the demand.
This sentiment is represented bluntly in the commentary provided on narrative when stating skeptical sentiment was rough: “Trust is gone.” For select investors, the rationale obliterating trust due to the implosion and the variety of justifications given becomes so convoluted, it renders the proposed recovery steps insufficient.
Technical Indicators Signal Further Downside Risk
From a technical perspective, the Mantra price has declined beneath all significant moving averages, a condition most analysts agree indicates that the market is firmly under bearish control. To make matters worse, the price movement is said to have completed a bearish pennant pattern. This pattern, which typically combines strong price movement with a triangular consolidation phase, is often viewed as a continuation pattern that indicates the preceding downward price movement is likely to continue.
Thus, using this technical analysis as our guide, we can reason that the Mantra coin, despite its low price, is unlikely to sustain its value over time. The chart suggests a probable downside target or support level at $0.2330, aligning with the lowest swing experienced in February last year.
For crypto examples, the analysis mentions Celsius, FTX, and Safemoon—in particular, these failed projects with occasional short squeezes where a price spike occurs due to “short sellers” being forced to buy the asset. However, the most important remaining point of the analysis is the presumingly bearish OM outlook, meaning that continued downward movement is more likely in the immediate time frame.
