Whale Moves 1.724 Million OM to Binance as Token Burn Announced
John Patrick Mullin, CEO of Mantra, announced a reduction of 300 million OM tokens from the total supply. This move has led to speculation surrounding a whale wallet, identified as 0x5AC, which accumulated 2.9 million OM at an average price of $6.45, totaling roughly $18.7 million. Recently, this wallet transferred 1.724 million OM (valued at approximately $1 million) to Binance, raising concerns about a potential sell-off.
Key points include:
- The whale could realize a loss of around $10.1 million if sold at current prices.
- The wallet still holds 1.173 million OM, worth about $595,000.
Mullin's Recovery Move
Mullin plans to burn 150 million OM tokens, scheduled for execution by April 29. Another 150 million OM token burn is under discussion, potentially halving team and ecosystem allocations. This would reduce OM’s total supply from 1.82 billion to 1.67 billion, increasing staking returns as the bonded ratio drops from 31.47% to 25.30%.
OM previously experienced a drastic drop of 90%, falling from $6.30 to below $0.55 on April 13.
Mixed Reactions from Community
Currently, OM is trading around $0.52, reflecting a 0.5% increase in the last 24 hours. The token burn announcement has led to an 88% rise in trading volume. Analyst Moon Jeff sees the dip as a buying opportunity with a near-term target of $1.
Conversely, critics highlight that around 4 million OM tokens continue to unlock periodically, and 45% of the total supply remains locked. Concerns persist regarding the effectiveness of the burn strategy and its timing.