MOVE Token Soars 25% as Movement Unveils $38M Strategic Reserve Following Market Maker Controversy
Movement’s MOVE token surged over 25% during East Asia’s morning trading session, making it the best-performing asset in the market, according to CoinDesk data. The sharp rally comes in response to Movement’s announcement of a $38 million buyback initiative aimed at establishing a Strategic Reserve.
While MOVE is significantly outperforming the broader market, the CoinDesk 20 (CD20) index remains flat, with leading cryptocurrencies like Bitcoin (BTC) and Ether (ETH) gaining less than 1%.
In a March 24 blog post, Movement detailed its decision to create the Strategic Reserve as a corrective measure following misconduct by a market maker. The firm alleged that the market maker violated contractual obligations by engaging in one-sided market-making strategies, extracting $38 million in profits without fulfilling its liquidity commitments.
“All recovered cash proceeds from the market maker will be allocated to the Movement Strategic Reserve—a $38 million USDT buyback program designed to acquire $MOVE for long-term utilization and restore USDT liquidity to the Movement ecosystem,” the company stated.
As previously reported by CoinDesk, Binance took action against the market maker, citing violations of its balanced liquidity provision rules. The exchange removed the firm after it was found placing large sell orders without sufficient corresponding buy orders.
Binance emphasized that market makers must maintain stable spreads, sufficient market depth, and balanced bid-ask orders. It also warned against disruptive high-frequency trading strategies, stating:
“Any market maker authorized by a project that fails to adhere to these principles will face further action from Binance to protect our users.”
The MOVE token’s strong price reaction underscores investor confidence in Movement’s response to the situation and its efforts to stabilize the ecosystem.
