MANTRA Restructures with Layoffs After Token Crash and Market Downturn

CEO John Patrick Mullin announced the layoffs via a post on X, confirming that the cuts would affect teams across the organization, with business development, marketing, human resources, and other support functions among the hardest hit. Mullin stressed that the decision was not a reflection of individual performance, describing impacted employees as talented contributors who helped build the MANTRA ecosystem. The move followed months of internal deliberation after earlier efforts to curb spending and streamline operations proved insufficient to align with “near-term market realities.”

The company’s aggressive expansion throughout 2024 and into the first quarter of 2025 is cited as a primary factor leading to the current predicament. In a push to scale quickly within the competitive RWA tokenization sector, MANTRA invested heavily in blockchain infrastructure, ecosystem development, and go-to-market efforts. However, this growth strategy collided with a “perfect storm” of adverse conditions: a protracted crypto market downturn, intense sector competition, and what Mullin termed “unfortunate and unfair” events in April 2025. This combination left the company with a cost base that management deemed no longer sustainable, necessitating deeper cuts to ensure survival.

The most acute shock to the MANTRA ecosystem occurred in April 2025, when its native OM token plummeted nearly 90% in a single day. The crash triggered massive liquidations and widespread investor panic, severely damaging confidence and drawing intense scrutiny over alleged insider activity and governance concerns. In a direct response aimed at restoring trust, CEO John Patrick Mullin pledged to burn the team’s allocation of 300 million OM tokens.

This token burn was executed in late April 2025. The action permanently reduced the circulating supply of OM and lowered staking ratios, representing a drastic measure to stabilize the faltering ecosystem. While intended as a corrective action, the crash and subsequent burn underscored the profound volatility and reputational risks facing the project, directly contributing to the financial pressures that precipitated the broader corporate restructuring.

According to Mullin, the restructuring is designed to make MANTRA significantly “leaner” in 2025. The reduced cost structure is expected to allow the company to concentrate its remaining resources on a narrower set of high-priority initiatives while enforcing greater financial and operational discipline. The goal is to refocus the business on its core blockchain and RWA tokenization objectives, preserving its runway for future development.

In his announcement, Mullin took full accountability for the strategic decisions that led to this point. “I take full accountability for these decisions and for the path that led us here,” he stated. “I know this is an incredibly challenging situation, particularly for those directly impacted, for their families, and for everyone at MANTRA. I’m especially sorry to those leaving us.” The layoffs at MANTRA represent a stark case study in the challenges of scaling a crypto venture during a bear market, highlighting how rapid expansion, when met with external shocks like the OM token crash, can force a painful but strategic retreat to ensure long-term viability.