MANTRA, a layer-1 blockchain firm specializing in real-world asset (RWA) tokenization, announced a company-wide restructuring on January 14. This strategic move follows a challenging year marked by a significant market downturn and the dramatic collapse of its native token, OM, earlier in 2025.
In a statement shared on X, MANTRA co-founder and CEO John Patrick Mullin indicated that the restructuring will involve a reduction in headcount as part of a strategic reset. Mullin stated that the decision is intended to make the company leaner and more capital-efficient as it moves into 2026. MANTRA was initially launched as MANTRA DAO, a platform focused on decentralized finance, before evolving into MANTRA Chain.
OM Token Collapse Intensified Financial Strain
The restructuring comes in the wake of a significant market event on April 13, 2025, when the price of the OM token experienced a decline of over 90%, falling to a low of $0.456472. Before this sharp drop, OM had been trading at prices exceeding $6, giving the project a market capitalization of over $6 billion. Following the collapse, OM's market capitalization decreased to approximately $681 million, which considerably affected the project's financial standing and market perception.
Mullin explained in a post on X that the token's collapse was triggered by "reckless forced closures initiated by centralized exchanges on OM account holders." He alleged that forced liquidations, occurring during periods of low liquidity, led to a cascading sell-off. Mullin attributed primary responsibility for the project's collapse to one centralized crypto trading exchange, although he did not disclose the specific name of the exchange.
Layoffs Reflect Shift Toward Focused Execution
According to Mullin, MANTRA had invested heavily in scaling its layer-1 blockchain, RWA tokenization infrastructure, and ecosystem growth. However, several factors have necessitated the current restructuring. Mullin wrote, "The incredibly unfortunate and frankly unfair events of April 2025, the prolonged market downturn, increased competition, and shifting market dynamics have made our cost structure unsustainable relative to our near-term realities."
The restructuring impacts various teams across the organization, with the most significant reductions occurring in business development, marketing, HR, and support functions. Mullin emphasized that these layoffs are not performance-related but rather a reflection of a narrowed operational focus.
Despite these setbacks, Mullin reaffirmed his confidence in MANTRA Chain. He stated, "I deeply believe in what we’re building. I believe in the potential of MANTRA Chain, our RWA ecosystem, and the role we’ll play in the next phase of crypto adoption." He added that the company's objectives are to streamline operations, prioritize core initiatives, and work towards profitability. Further details regarding MANTRA’s updated operating rhythm are expected to be shared in the coming weeks.