24th April

You can read last week's “This week in crypto” here.

Following the dramatic 90% crash of its OM token on 13 April, Mantra has announced a significant token burn initiative to rebuild investor trust and stabilise its ecosystem. The platform plans to destroy 300 million OM tokens, representing approximately 16.5% of its total supply. This includes 150 million tokens from founder John Patrick Mullin's personal allocation, valued at around $80 million. The remaining 150 million tokens are to be contributed by key ecosystem partners. ​

The burn process involves unstaking the tokens, with completion expected by 29 April. Once finalised, the total OM supply will decrease from 1.82 billion to 1.67 billion tokens. This reduction aims to lower the bonded ratio from 31.47% to 25.30%, potentially increasing staking rewards and incentivising long-term holding.

Despite these efforts, OM's price has remained volatile, reflecting ongoing investor scepticism. Analysts caution that while the burn may provide short-term relief, Mantra must address underlying concerns about governance and transparency to ensure sustainable recovery. ​

In addition to the token burn, Mantra has released a tokenomics dashboard to increase transparency and is engaging with the community to rebuild trust. The project's leadership emphasises that the burn is just the first step in a broader strategy to stabilise the ecosystem and restore confidence among stakeholders.

Bitcoin's price has experienced a significant rally, surpassing $93,000 on 22 April, driven by renewed optimism over US-China trade relations. President Trump's announcement that tariffs on Chinese goods "will come down substantially" and Treasury Secretary Scott Bessent's remarks on the unsustainable nature of the trade standoff have boosted investor confidence. ​

This positive sentiment has extended to the broader cryptocurrency market, with altcoins such as Ethereum, Dogecoin, and Sui also posting gains. The CoinDesk 20 Index, which tracks the performance of major digital assets, rose by 7% over the past 24 hours.

Analysts attribute this rally to a combination of factors, including institutional demand, macroeconomic stability, and the perception of cryptocurrencies as a hedge against geopolitical uncertainties. However, some caution that the market remains susceptible to volatility, and sustained growth will depend on resolving broader economic issues. ​

Additionally, Bitcoin futures open interest increased by 9% to 715,710 BTC, valued at approximately $66.98 billion, indicating growing investor engagement. Funding rates turned positive, reflecting a bullish shift in market sentiment. ​

President Donald Trump's foray into the cryptocurrency space has taken a new turn with the announcement of an exclusive dinner event for top holders of his $TRUMP memecoin. The event, to be held at his Washington-area golf club, will invite the top 220 average $TRUMP coin holders between 23 April and 12 May. The top 25 holders will receive access to a VIP reception and a special tour.

This initiative has sparked a surge in the $TRUMP coin's value, reflecting the growing intersection of politics and cryptocurrency. While supporters view the event as a unique engagement strategy, critics raise concerns about potential conflicts of interest and the blending of political influence with personal business ventures. ​

The Trump family's increasing involvement in crypto ventures, including his sons' launch of a stablecoin project, has further complicated the political dynamics surrounding cryptocurrency legislation. Lawmakers express concerns that these ventures may hinder bipartisan efforts to establish clear regulatory frameworks. ​

Ethics watchdogs have also criticised the move, suggesting that offering exclusive access to the president in exchange for holding a cryptocurrency sets a concerning precedent. The White House has stated that President Trump's assets are in a trust managed by his children, asserting no conflicts of interest.

The UK government is under mounting pressure to provide clear and robust regulatory frameworks for cryptoassets. Despite earlier commitments to position the UK as a global crypto hub, progress has been slow, leading to uncertainty that hampers investment and growth. The Financial Conduct Authority (FCA) has published a crypto roadmap, with draft regulations on capital, liquidity, and risk management expected soon. However, effective enforcement is not anticipated until late next year. In the interim, the UK risks falling behind international competitors such as the US, Singapore, and the UAE, which are advancing more rapidly in crypto regulation and innovation. ​

Industry experts advocate for the appointment of a dedicated crypto envoy to align policy, foster innovation, and streamline regulation. They also call for a broader strategic plan to attract investment, integrate public sector applications, and promote synergy between blockchain, AI, and quantum computing. With 12% of UK adults owning cryptoassets but only 8% of global venture capital in the sector invested in UK firms, a coherent and forward-looking regulatory strategy is deemed essential for the UK's economic future. ​

Furthermore, proposals for a 0.5% transaction tax on crypto trades, akin to the UK's stamp duty on equities, have sparked debate. Proponents argue that such a tax could level the playing field between crypto and traditional investments, potentially redirecting funds into the stock market. Critics warn that additional taxation could drive crypto investors and businesses to more favourable jurisdictions, undermining the UK's competitiveness in the digital asset space.

Amid these discussions, the FCA has also expressed concern over the growing number of young investors entering the crypto market without sufficient understanding of the risks involved. The regulator emphasises the need for enhanced consumer protection measures and financial education to ensure that individuals make informed investment decisions. Balancing innovation with investor safety remains a central challenge as the UK seeks to establish itself as a leader in the evolving global crypto landscape.

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