MANTRA has kicked off its OM token buybacks with a new $25 million allocation, aimed at restoring investor confidence and supporting the token’s price following a $5 billion market cap loss in April.
This fresh funding comes in addition to the $20 million investment from Inveniam announced earlier this month, which is focused on advancing MANTRA’s RWA blockchain initiatives in the UAE and U.S. While Inveniam’s capital strengthens the institutional framework, the $25 million allocation is specifically designated for repurchasing OM tokens from the open market.
The buyback program begins today, August 27, and will be executed transparently over several months across major centralized exchanges. Independent trading firms will place recurring buy orders at or near market prices. Purchased tokens will be withdrawn as ERC-20 assets, migrated to MANTRA’s mainnet, and staked with its validator set.
At current valuations, the first buyback tranche is expected to acquire roughly 110 million OM tokens, representing about 10% of the circulating supply.
This initiative fulfills CEO Mullin’s April commitment to conduct a token buyback after OM’s price fell from over $6 to under $0.50, erasing more than $5 billion in market capitalization.
“This buyback program is a pivotal moment for MANTRA. It is not merely a financial transaction but a signal of confidence from our existing partners and key stakeholders. Through the repurchasing of OM on the open market, we reinforce our belief in the long-term utility of the token, support our vision for the ecosystem and return value to token holders,”
Can MANTRA Buybacks Trigger OM Recovery After April’s Crash?
MANTRA’s buyback announcement has given the OM token a boost, with trading volume surging over 200% in the past 24 hours. OM is currently trading at $0.2305, encountering immediate resistance at $0.25, which coincides with the 50-day SMA. The token was sharply rejected at this level yesterday.
Despite the short-term spike, the mid- and long-term outlook remains bearish, as OM continues to trade below both the 50-day and 100-day SMAs. Short-term momentum also leans downward, with the 7-day EMA still below the 20-day EMA. A close above the 7-day and 20-day EMAs could indicate a potential recovery attempt, but a sustained move past the 50-day EMA with follow-through would be needed to confirm a broader trend reversal.
