The Current Status of the RWA Token: An Overview
Mantra, recognized as the second real-world asset token following Chainlink, experienced a drastic decline of over 90% within the last 24 hours.
Here’s what we have learned.
Just days ago, Mantra (OM) boasted a 640% increase over the past year. Now, its $6-billion market capitalization has plummeted to roughly $485 million.
Patrick Mullin, CEO of Mantra, recently spoke with crypto.news about their commitment to being a fully compliant ecosystem for RWA tokenization and trading. The company had just acquired a VASP license from Dubai’s VARA and aimed to establish itself as a virtual asset exchange.
It remains uncertain whether this recent downturn will hinder those ambitions.
MANTRA Ecosystem Fund
The newly established Mantra Ecosystem Fund (MEF) aims to support RWA and DeFi projects globally for over four years.
The company continues to offer OM-token grants and capital investments while focusing on lending/borrowing, trading, asset management, derivatives, and infrastructure.
Mantra has also entered into a $1-billion tokenization agreement with DAMAC Group, which includes sectors such as real estate, hospitality, and data centers.
While the company had several initiatives planned, the crypto community quickly pointed out various developments they found concerning.
One analyst, known as Choze, likened Mantra’s sharp decline to the May 2022 downfall of the Terra ecosystem.
“Welcome to Terra Luna V.2,” Choze tweeted to over 20,000 followers.
“For those asking, the $OM team has sold their entire allocation,” Choze added. “That accounts for 90% of the total circulating supply, vanished. They also removed Mantra’s official Telegram group. Just like that, $3.5 billion in market cap disappeared.”
TrimBot, who identifies as an RWA optimist, criticized Mantra as engaging in “pure market manipulation.”
Crypto.news attempted to connect with a spokesperson from Mantra through their website but was unsuccessful. It was unclear if the startup’s website was down or simply not accepting media inquiries.
More on MEF
“With the MEF, we’re not merely writing checks—we’re creating a strategic pathway for the next wave of blockchain innovation,” Mullin stated in a prepared release earlier this month.
“This fund will function as a growth engine, providing founders with access to capital, infrastructure, and a robust regulatory support system,” he continued.
The MEF is backed by a global coalition of capital partners, including Laser Digital, Shorooq Partners, Brevan Howard Digital, Valor Capital, Three Point Capital, Amber Group, Manifold, UoB Venture, DAMAC, Fuse, LVNA Capital, and Forte.
Crypto.news attempted to reach out to Three Point Capital but was unable to submit an inquiry.
This is an evolving story. Stay tuned for more updates.