Recently, the star project of the RWA track, MANTRA (OM), experienced a significant decline, dropping 90% in a short time from 6 USD to 0.5 USD, with a market cap evaporating by over 5.5 billion USD.
As a token that set a historical high in November 2024, OM's plunge has sparked market discussions. So, where does the value of OM actually lie? Has MANTRA's RWA business been implemented? Is the RWA track still worth looking forward to? This article will take you deep into the analysis.
Q1: What are the reasons for the sharp decline of OM? Is it a bubble burst?
Not at all. The decline of OM is mainly caused by the following factors:
Whale reduction, large holders offloading: Data shows that from November 14 to 17, 2024, the net inflow of large holders in OM decreased by 54%, indicating that large holders have begun to take profits.
High control, overvalued market cap: Multiple sources have revealed that the MANTRA team controls about 90% of the OM token supply. Crypto analyst Mosi pointed out that the project's TVL is only 4 million USD, yet corresponds to an FDV of over 10 billion USD, with the key reason being the extreme concentration of token circulation. The team has not made any decentralization efforts, holding 792 million OM in a single wallet.
Typical 'buy the expectation, sell the fact' effect: Before the mainnet launch, investors bought in advance based on positive expectations, while after the mainnet launch, they chose to cash out, leading to a significant price correction.
On-chain liquidation triggers avalanche: The MANTRA team stated that this round of decline was caused by irrational liquidations, not by human actions of the project party, emphasizing that the project's fundamentals have not fundamentally changed.
Q2: Where does the value of the OM token lie? Is it tied to specific real-world assets?
The value of OM mainly comes from its core functions within the MANTRA ecosystem, and it is not directly anchored to a specific real-world asset (RWA), but it is closely related to RWA business. The main value is reflected in the following aspects:
PoS validation and network security assurance: OM is the native token of the MANTRA mainnet, which can be used for staking to participate in block validation, ensuring network operation security while earning staking rewards.
Ecological governance rights: OM holders can participate in platform governance, including protocol upgrades, resource allocation, parameter adjustments, and other key decisions.
Essential for platform interaction: Users need to use OM tokens to pay transaction fees on the MANTRA platform, such as minting/destroying RWA tokens in the Guard module.
Reputation system incentives: MANTRA introduces a contribution-based Karma reputation system, where active participation can enhance Karma scores, leading to higher returns, lower fees, and priority service.
Although OM is not a mapped token for a specific asset, it is a key carrier connecting real-world assets with on-chain infrastructure, and its value may be released as the RWA ecosystem expands.
Q3: Has MANTRA's RWA business truly been implemented? What projects have been advanced so far?
Yes, MANTRA's tokenization of real-world assets (RWA) has been substantively implemented, especially with key progress in the Middle East. Core projects include:
Cooperation with DAMAC Group: In January 2025, MANTRA announced a partnership with Dubai real estate giant DAMAC Group to tokenize at least 1 billion USD of real estate assets within the UAE.
Cooperation with MAG Property Development: The two parties plan to put 500 million USD worth of Dubai real estate assets on-chain.
Signing a memorandum of cooperation with Zand Bank: Zand is a licensed digital bank in the UAE, and both parties will collaborate to develop a compliant framework for the issuance and circulation of RWA tokens, adhering to the regulatory requirements of Dubai VARA.
In addition, MANTRA has also built a complete technical support system, including digital identity module (DID), compliance system (MANTRA Guard), asset management system (MTS), decentralized exchange (DEX), and liquidity protocol (LEEP), providing underlying support for the entire RWA process.
Therefore, the price fluctuations of OM are more a phenomenon at the token market level and cannot simply be viewed as a 'collapse' of the project or the RWA track.
Q4: What is the background of the MANTRA team? Where have they established themselves? Where are their business focuses?
MANTRA was founded by John Patrick Mullin, who serves as CEO, and has established physical offices in Dubai and Hong Kong, which are the two core markets of its global strategy.
MANTRA is applying for a license from the Dubai Virtual Assets Regulatory Authority (VARA) to ensure compliance in conducting RWA business and deeply cultivate the Middle Eastern and Asian markets. Its main partners include:
UAE real estate companies DAMAC, MAG
UAE digital bank Zand
Compliance cooperation agencies, legal service providers, etc.
The scale of tokenized assets that have been advanced has exceeded 1.5 billion USD, covering various types of asset categories including residential and commercial real estate.
Q5: Is there still reason to expect RWA?
Although OM's sharp decline has caused controversy, it does not mean that the RWA track as a whole is in decline. On the contrary, the tokenization of real-world assets is becoming a key bridge connecting traditional finance with the blockchain world, and global capital markets are actively embracing this trend.
According to Tren Finance's predictions, by 2030, the RWA market size may reach 10 trillion USD, with even more optimistic estimates pointing to 30 trillion USD. In contrast, it is still in the early stages, with significant growth potential.
Many global leading financial institutions have begun to layout in the RWA field:
BlackRock: Launched the first on-chain money market fund, operating on JPMorgan's Tokenized Collateral Network.
JPMorgan: Built the Onyx platform to promote asset digitization and settlement optimization.
Franklin Templeton: Has managed over 400 million USD in on-chain fund assets.
These initiatives show that RWA is no longer just a 'self-indulgence' in the crypto field, but is being taken seriously and tested on a large scale by top global financial institutions.
The rapid development of RWA is attributed to the joint promotion of technology and regulation:
Continuous improvement in blockchain interoperability and performance provides assurance for the scalability and cross-chain transfer of RWA.
Multiple regulatory agencies, including those in Hong Kong, Dubai, and Singapore, are gradually clarifying the legitimate framework for RWA, clearing obstacles for business development.
The development logic of RWA is different from that of NFT and DeFi; it connects real assets, compliance processes, and traditional financial structures, making it more stable and sustainable.
Summary: RWA is worth looking forward to and worth planning in advance.
The market fluctuations of individual projects cannot obscure the long-term potential of the RWA track. With the establishment of regulations, improvement of infrastructure, and large-scale participation from financial institutions, RWA is expected to become the starting point for the next wave of trillion-dollar asset migration.
If you are also paying attention to or considering entering RWA-related business, feel free to leave a message or reply with the keyword 'RWA'; we will provide you with professional consulting and matching services.
