Binance has announced that it will stop supporting deposits and withdrawals of the OM (MANTRA) token on September 26, 2025. This includes the Ethereum (ERC20) and BNB Smart Chain (BEP20) networks. What does this mean for OM token holders?
Is This Harming OM Token’s Liquidity?
Yes, definitely. Limiting deposits and withdrawals to certain networks can create liquidity issues and disrupt trading activities. It becomes challenging to transfer tokens in and out, causing the liquidity on the affected exchanges to dwindle. While Binance trading remains unaffected, the token's liquidity from external sources will be restricted, which has already resulted in a significant price drop of about 7.43%.
Consider the price fluctuations: It's currently priced at $0.2158 compared to its all-time high of $9.04 in February 2025. That's a huge drop in value, raising concerns about its viability.
What are the Pros and Cons for the Project’s Strategy?
MANTRA has initiated a $25 million buyback strategy for OM tokens, which is about 10% of the entire supply. This can help stabilize prices temporarily by reducing supply. However, if the buybacks are not backed by stable revenue or if the project isn't fundamentally strong, the effect will only be short-lived.
So far, they've raised $45 million in investments, which might boost investor sentiment. But can this type of funding create a long-term solution?
How are Startups Adapting to the Regulatory Landscape in the Long Run?
Small fintech startups are adapting significantly to the evolving regulatory landscape. This is essential for maintaining their operations and ensuring compliance with new laws. They seek federal licenses or state charters for stablecoin issuance, which mirrors the practices of established banks.
Investments in compliance technology and partnership deals to manage reserve custody are on the rise. This will help them navigate the increasingly complex world of crypto regulations and could present a competitive advantage over larger players.
What Can You Do to Protect Your Investments?
With everything said, what can OM token holders do? Here are a few considerations:
- Be proactive. Keep an ear to the ground for regulatory announcements.
- Diversify: Holding just one token leaves you very exposed.
- Use buyback opportunities wisely.
- Be active in communities to share information.
- Move before announcements. Don't be left holding the bag when bans happen.
It's a volatile market, and these suggested steps could help protect you from bigger losses.
