Mantra Chain Announces $25M OM Token Buyback Initiative

MANTRA Chain has announced a $25 million OM token buyback, backed by investor Inveniam IO, enhancing ecosystem growth and market stability, announced today on Telegram.

The buyback boosts investor confidence and reduces supply-side pressures, with OM price already increasing 6.79% post-announcement, indicating strong market interest and engagement.

Mantra Chain’s initiative involves a $25 million OM token buyback, indicating institutional backing. This financial move aims to stabilize and bolster the ecosystem, with attention from investors and stakeholders on potential growth. MANTRA AG, alongside CEO John Patrick Mullin and funds from Inveniam IO, spearheads the buyback, showcasing confidence in the OM token’s sustainability and market value.

Positive Market Impact

Initial market responses indicate a positive effect on the OM token, which experienced a 6.79% price surge following the buyback announcement. This shift points to renewed investor confidence and decreasing supply pressure on the token.

The significant buyback, which reduces circulating supply by 10%, may enhance the OM token’s usage and governance roles, benefiting the DeFi space. Institutional backing marks a major shift, reinforcing token security and market stability.

Regulatory Compliance and Historical Context

The move is supported by a recent Dubai VASP license, ensuring regulatory compliance and attracting institutional scrutiny. This decision aligns with MANTRA’s emphasis on legal adherence and innovative practices in the crypto sector.

Historically, token buybacks correlate with market stabilization and investor confidence, echoing similar past practices like BNB’s quarterly burns. This institution-backed approach is noteworthy, signaling potential expansion in regulatory-compliant tokenized assets.

John Patrick Mullin, CEO & Founder, MANTRA, “By reducing the circulating supply of OM, we aim to enhance the token’s stability and value proposition for our stakeholders.” source