In a bold move to stabilize its token economy and rebuild investor confidence, Movement Network announced it will launch a $38 million buyback program after recovering funds from a rogue market maker caught manipulating trades.
The buyback, set to roll out over the next three months, follows Binance’s discovery of “market irregularities” linked to the now-terminated market maker tasked with handling liquidity for the MOVE token.
The incident occurred when Binance flagged suspicious activity tied to the MOVE token. According to the exchange, the market maker dumped 66 million MOVE tokens, aggressively selling while placing minimal buy orders—a strategy pocketed them $38 million in Tether (USDT).
Binance responded swiftly, freezing the market maker’s assets and permanently barring them from further activities on the platform. The Movement Network Foundation was promptly notified.
Reinvesting to Strengthen the Ecosystem
In response, the Movement Network Foundation severed ties with the market maker and confirmed it had recovered the full $38 million. Rather than sitting on the funds, the organization channels them directly back into the ecosystem.
“All cash proceeds recovered from the Market Maker will be used by the Movement Network Foundation to establish the Movement Strategic Reserve: a $38 million buyback program to purchase $MOVE for long-term use,” the foundation announced.
A public wallet address for the reserve has been shared, promising transparency as the foundation periodically purchases MOVE tokens to reinject liquidity and support the token’s value.
This isn’t an isolated incident for Binance. Just weeks earlier, the exchange offboarded market makers for projects like GoPlus Security and MyShell, confiscating profits and pledging compensation plans for impacted users.
In parallel, Binance also suspended an internal staff member for alleged insider trading part of a broader push to tighten controls as regulatory scrutiny on crypto trading intensifies.
Rebuilding Trust in Crypto Liquidity Markets
The Movement Network’s aggressive response highlights a growing challenge in the crypto space: managing third-party liquidity providers. While market makers play a crucial role in ensuring smooth token trading, their actions when unchecked can destabilize projects and erode user trust.
By committing recovered funds to a transparent buyback, the Movement Network is attempting to turn a damaging event into a strategic opportunity to stabilize MOVE and demonstrate accountability.
What’s Next?
As the buyback unfolds, all eyes will be on how effectively the Movement Network can restore equilibrium to its token market. The program not only tests the foundation’s resilience but also sets a precedent for how projects should handle rogue actors in their ecosystems.
In an industry still haunted by manipulation scandals, swift action and transparency may be the only way forward.
