The Movement Network Foundation has revealed its plans to initiate a comprehensive $38 million buyback plan, aimed to mitigate the impact of the recent accusation of market manipulation and ensure the long-term sustainability of the ecosystem.
The organization revealed in a recent post,
“All cash proceeds recovered from the Market Maker will be used by the Movement Network Foundation to establish the Movement Strategic Reserve: a 38M $USDT buyback program to purchase $MOVE for long-term use and to return the USDT liquidity to the Movement ecosystem.
By removing a significant amount of tokens from circulation, the foundation aims to reduce potential downward price pressure and promote market stability.
Binance Bans Alleged MOVE Token Manipulator
The Movement Network Foundation’s decision to roll out a $38 million buyback plan comes after Binance banned a market maker following allegations of manipulating the MOVE token’s price and amassing a staggering $38 million profit.
According to the statement Binance released, the popular crypto exchange revealed that a market maker associated with another entity for GPS and SHELL, which was offboarded on March 9 due to misconduct, had engaged in suspicious activities.
Binance claimed the market maker sold approximately 66 million MOVE tokens on December 11, just a day after the token’s listing, with minimal buy orders, generating a net profit of $38 million in USDT. The crypto exchange took swift action, freezing the proceeds to compensate affected users and notifying Movement Labs and the Movement Foundation of the irregularities.
Foundation Responds to Binance’s Claims
In response to Binance’s statements, the Movement Network Foundation stated that it was not aware of the manipulation and severed all ties with the market maker, informed other major exchanges, and collaborated with Binance to recover funds.
To counteract the effects of this incident, the foundation added that it will execute a $38 million buyback of MOVE tokens over the next three months. This buyback operation will take place exclusively on Binance.
In a similar development highlighting the severity of market manipulation, the US SEC filed charges against three firms and nine individuals for allegedly being involved in a coordinated scheme to manipulate the prices of several cryptocurrency assets on various crypto exchanges.
