Movement Network to buy back tokens with $38M recovered from rogue market maker

The enactment down the Movement Network said it volition usage $38 cardinal recovered from a marketplace shaper to bargain backmost MOVE tokens implicit the adjacent 3 months.

On March 24, the Movement Network Foundation said it recovered astir $38 cardinal successful assets from a marketplace shaper tasked with providing liquidity connected bargain and merchantability orders for the Movement (MOVE) token connected Binance. 

Binance offboarded the marketplace shaper owed to “market irregularities.” The speech sanctioned the marketplace maker, freezing its proceeds and forbidding it from further market-making activities.  

Market makers provide liquidity to crypto tokens to pull traders and stabilize their prices. These entities are tasked with providing liquidity connected some bargain and merchantability orders to guarantee the creaseless cognition of crypto exchanges. 

Movement Network commits $38 cardinal to token buyback

According to Binance, the marketplace shaper sold 66 cardinal MOVE tokens aft the token was listed, portion placing “little” successful bargain orders. These trades netted the marketplace shaper $38 cardinal successful Tether (USDT) from their trades. 

Binance said it froze the profits and informed the Movement Network Foundation of the incident.

The instauration said it had “severed each relationships” with the marketplace shaper and had recovered the frozen funds from the marketplace maker’s rogue actions, which it said it would usage successful a buyback program: 

“All currency proceeds recovered from the Market Maker volition beryllium utilized by the Movement Network Foundation to found the Movement Strategic Reserve: a 38M $USDT buyback programme to acquisition $MOVE for semipermanent usage and to instrumentality the USDT liquidity to the Movement ecosystem.”

The enactment besides shared a wallet code for its “Movement Strategic Reserve,” to which the purchased MOVE tokens volition beryllium transferred periodically. 

Related: Binance is not ‘dumping’ Solana and different token holdings — Spokesperson

Binance investigates marketplace irregularities

The incidental follows different Binance enactment against an affiliated marketplace shaper connected the exchange. On March 9, Binance announced that it had offboarded marketplace makers for projects GoPlus Security and MyShell. The speech said it had confiscated the project’s proceeds and would marque a compensation program for its users. 

Apart from marketplace makers, the speech precocious suspended a unit member for alleged insider trading. On March 25, Binance launched an probe connected a subordinate of its Binance Wallet squad aft receiving a ailment that the worker had been front-running trades. 

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