Following an alleged breach of contract by a market maker, Movement Network has initiated a $38 million buyback program for its MOVE token.
In a Mar. 24 statement on their official blog, the Movement Network Foundation revealed that Binance had warned them about the problem earlier this month. The market maker had been selling huge amounts of Movement Network (MOVE) without supplying the agreed-upon liquidity on the MOVE/USDT pair.
The foundation was unaware of the market maker’s activities and cut ties upon discovery. The team has been working with Binance to recover funds. Using the $38 million in Tether (USDT) that has already been recovered, Movement Network will repurchase MOVE tokens on the open market.
The buyback will take place on Binance over the next three months and tokens will periodically be transferred to the Movement Strategic Reserve.
Movement Network is a modular blockchain ecosystem that allows developers to launch high-performance MoveVM rollups that connect the Move and Ethereum Virtual Machine networks. The network integrates with Ethereum (ETH) through a dedicated bridge and claims to achieve a transaction capacity of over 160,000 per second.
On Mar. 10, the network launched its Public Mainnet Beta, enabling the permissionless deployment of decentralized applications. To solve the cold start problem, where new blockchains struggle with low liquidity, Movement unveiled Cornucopia, an incentivized liquidity bootstrapping program, alongside its Public Mainnet Beta.
The program has helped Movement Network secure over $250 million in total value locked. With a market capitalization of $1.1 billion, the blockchain is backed by a number of prominent investors, including Polychain Capital and Binance Labs.
Notably, Donald Trump’s World Liberty Financial holds $3.42 million worth of MOVE, as per Arkham Intelligence data, adding to the growing institutional interest in the token.
