MOVE Token Rockets After Binance Freezes Alleged Market Manipulator’s Assets, Movement Foundation Plans Buyback – Retail Traders Cheer
While the buyback program could influence MOVE’s price and liquidity, it remains unclear how it directly reimburses affected users since Binance froze the proceeds “for the purpose of compensating users.”
FollowThe Movement (MOVE) token surged more than 36% during U.S. trading hours on Tuesday after crypto exchange Binance identified a market maker accused of dumping millions of MOVE tokens following its launch and froze its assets.
The token reached a 24-hour high of $0.5934, though it remains down 63% from its all-time high of $1.45 set in December.
Binance stated that the market maker was linked to another entity that was previously offboarded from the platform on March 9 due to misconduct involving GPS and SHELL tokens.
The exchange said that a day after MOVE was listed on Dec. 10, the market maker sold approximately 66 million MOVE tokens while placing "little buy orders," netting a profit of 38 million USDT before being expelled on March 18.
Binance informed both Movement Labs and Movement Foundation of the irregularities and froze the proceeds “for the purpose of compensating users,” according to its statement.
The Movement Network Foundation confirmed Binance had reached out regarding an investigation into MOVE’s market-making activities on March 11.
"Movement Network Foundation and Movement Labs had absolutely no knowledge that this was happening," the foundation said, adding that it had initially partnered with the market maker because it had supported other projects in the Movement ecosystem.
As part of its response, the Movement Network Foundation has committed to a $38 million buyback program using the recovered funds.
The initiative, named the “Movement Strategic Reserve,” will purchase MOVE tokens over the next three months on Binance. The tokens will periodically be transferred to an on-chain wallet designated for long-term ecosystem growth.
While the buyback program could influence MOVE’s price and liquidity, it remains unclear how it directly compensates affected users – the original stated purpose of Binance freezing the funds.
On Stocktwits, retail traders reacted positively to the news, pushing for the token to rally further.
Move was originally developed at Meta by a team from Facebook’s now-discontinued Diem stablecoin project.
With today’s rally, the MOVE token has gained 22% over the past week and risen 9.1% over the past month.
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