OM, after hitting a low of 0.017 on October 12, 2023, has since skyrocketed to about 8u, an increase of approximately 470 times, which stands in stark contrast to the currently declining market, thus sparking widespread discussion.

Nowadays, some say OM is a strong whale coin, while others claim OM should start at least 10u. How the market will develop remains to be seen, but let's first understand what this token is all about before discussing the opportunities and risks of investing in OM. #OM #MANTRA @MANTRA_Chain

📌 How did $OM come about?

OM is the token on the Mantra Chain, which was founded in Hong Kong in 2020 by John Patrick Mullin, who graduated from Tongji University.

Mantra has raised a total of 11 million dollars, mainly financed by Middle Eastern leaders, with other funding primarily from Chinese VCs.

The TGE of OM was launched in August 2020 as an ERC20 token on Ethereum. $OM was initially launched as a DeFi project and is the dApp token of MANTRA, with a maximum supply of 888,888,888.

In September 2022, Mantra prepared to create its own chain.

In February 2024, OM is the official token of the Mantra chain.

On October 10, 2024, the Mantra Chain mainnet will be released.

On December 17, 2024, 37.2m OM had been bridged from EVM to the Mantra mainnet. However, the token cap increased to 1,777,777,776. Half of the tokens were minted on the Mantra mainnet, and the project team can also mint additional tokens to increase the cap.

Technically, Mantra is a layer blockchain based on Cosmos, using the consensus algorithm of POS staking (officially stated as POS, but I think it resembles DPOS more), specifically designed for RWA on-chain.

Mantra boasts itself as a permissionless blockchain for RWA applications, how can we understand such a convoluted statement?

We know that the reason RWA cannot be massively on-chain for the time being is 'compliance', while Mantra's smart contract module (program code) does not embed compliance at the consensus level (blockchain bottom layer), but implements flexible and powerful permissions at the application layer (blockchain upper layer) as per needs.

Users can solve all RWA compliance issues themselves when writing smart contract programs on the chain.

Therefore, RWA can handle its compliance and flexibility more easily on Mantra Chain.

📌 The main features offered by Mantra Chain.

1. DID functionality (knowing who the user is)

This is the function of digital identity, where each DID must bind the Mantra wallet address with the user's real information upon registration, and after binding, a special NFT is sent to the user.

2. Guard module (distinguishing user permissions and levels)

The Guard module, combined with DID, can analyze user permissions and levels to access certain special functions of the application.

3. Token services (MTS, used for RWA tokenization)

MTS is a major function used for tokenization in Mantra, including token creation, management, minting, burning, freezing, distribution, confiscation, etc. This is very different from traditional token functions on blockchain, specifically added for RWA compliance.

4. DEX exchanges (for token trading)

The exchange on the Mantra chain is specifically for trading RWA tokens, but AMM is whitelisted, meaning only approved assets or users can trade or provide liquidity, thus ensuring security and compliance.

5. LEEP liquidity solutions (solving the issue of insufficient liquidity for RWA assets on-chain)

This function is still under development. LEEP prevents certain RWA assets from having insufficient liquidity on the chain, as this is a foreseeable troublesome issue for RWA; assets with no trading equal no on-chain presence.

📌 Besides the chain, Mantra also provides

Mantra Bridge: specifically used to transfer OM token assets on the Ethereum mainnet to the Mantra chain. Why bridge these two chains? The answer will follow.

Mantra Zone: the portal for front-end user interaction, providing full functionality on the Mantra chain.

Mantra Stake: POS staking validation pool, currently the highest staking APY is 5.65%, with a total of 28 validators available for staking.

Chakra Pool: a dedicated reward pool, where depositing USDC in the Chakra Pool on Ethereum or Base will automatically generate USDY on the Mantra chain (USDY is a stablecoin based on US treasury by the Ondo project), while also earning KARMA points. Based on KARMA points, users can receive $OM token rewards, as well as additional rewards in $OM and $ONDO tokens.

📌 What is the current status of the Mantra project?

According to DefiLlama data, excluding the OM token, Mantra currently has a total TVL of only 4.41 million dollars, all in $USDY, but the official website reports over 18 million dollars.

Currently, Mantra's RWA only has Libre Capital integrated, with a total TVL of 1.5 million in Mantra.

$OM The current price is around 7.5u, with a circulating market cap of 7.2 billion and a fully diluted market cap of 13.4 billion.

👉 So can the OM token that has risen so much still be bought?

From the analysis above, it can be seen that

The fundamental reason for investment is:

1. Can be used as gas fee for Mantra.

2. You can stake to earn up to 5.65% annual yield.

3. The hype around the RWA concept.

The risk lies in

1. The background of the Mantra project's financing party is unknown.

2. Mantra's TVL compared to market cap is indeed too small, less than 20 million.

3. The number of tokens doubled after the mainnet launch of Mantra, but retail investors can only receive a maximum of 2.8% of it.

4. Tokens can be minted at any time on Mantra.

5. There are too few stakable validators on Mantra, making the network overly centralized.

6. On Ethereum, the top 20 holders account for over 70% of the token.

7. There are currently no actual RWA applications on the project.

So, given this risk investment ratio, do you still want to buy? Can it reach 10u?