In response to an alleged contract violation by a market maker, Movement Network has announced a $38 million buyback initiative for its MOVE token.
On March 24, the Movement Network Foundation disclosed in an official blog post that Binance had notified them of the issue earlier this month. The market maker in question had been releasing significant volumes of Movement Network (MOVE) without providing the agreed liquidity on the MOVE/USDT trading pair.
The foundation was unaware of these activities and severed ties once the situation came to light. The team has since partnered with Binance to recover the lost funds. Movement Network plans to use the $38 million in Tether (USDT) that has already been retrieved to buy back MOVE tokens from the open market.
This buyback operation is set to take place on Binance over the course of the next three months, with tokens being periodically moved to the Movement Strategic Reserve.
Movement Network is a modular blockchain ecosystem, tailored for developers to launch high-performance MoveVM rollups that link the Move and Ethereum Virtual Machine ecosystems. The network boasts integration with Ethereum (ETH) via a dedicated bridge and claims to handle over 160,000 transactions per second.
On March 10, the network introduced its Public Mainnet Beta, facilitating the permissionless launch of decentralized applications. To address the cold start dilemma, where new blockchains face challenges with low liquidity, Movement unveiled Cornucopia, an incentivized liquidity bootstrapping initiative, along with its Public Mainnet Beta.
This initiative has helped Movement Network accumulate over $250 million in total value locked. With a market cap of $1.1 billion, the blockchain has garnered support from notable investors, including Polychain Capital and Binance Labs.
Interestingly, Donald Trump’s World Liberty Financial reportedly holds $3.42 million worth of MOVE, according to Arkham Intelligence data, reflecting the increasing institutional interest in the token.