Key Points
- Binance released an investigation on a MOVE market maker that crashed the coin’s price after launch.
- Following the reports, MOVE price spiked today.
Earlier today, Binance released an investigation into a Movement (MOVE) market marker that triggered a sudden price drop for MOVE immediately after its launch in December 2024.
Movement Network is an ecosystem of Modular Move-Based blockchains that promises to enable developers to build blockchain apps, and bridge the gap between Move and EVM ecosystems.
Binance’s report led to a price spike for the digital asset.
Binance Revealed Actions Taken Against MOVE Market Maker
In an official announcement, Binance revealed that it has identified a market maker of the project Movement (MOVE)’s connection with another market maker that the exchange previously offboarded and forbade any market-making activities on the exchange due to misconduct.
The connection was with the market maker for GPS and SHELL – another entity for which Binance previously applied sanctions following misconduct.
According to Binance, the market-making illicit behavior related to the MOVE entity included the following:
- On December 10, one day after MOVE’s listing, about 66 million MOVE tokens were sold by the market maker, with few buy orders, leading to a price crash for the digital asset.
- The market maker recorded a net profit of 38 million USDT before the exchange offboarded it on March 18.
The crypto exchange also said that due to the market maker’s behavior, it took further steps to protect users.
These steps include the following:
- Informing the Movement Labs and Movement Foundation teams about the investigation’s results
- Freezing the market maker’s proceeds to compensate users
- Offboarding and forbidding any other market maker activities on Binance
Binance also revealed the necessary compliance steps of any market maker on the exchange:
- Placing orders for both bid and ask
- Ensuring enough order size within specified depth levels
- Maintaining a healthy and stable spread for the market activity
- Ensuring orders remain for a specified amount of time
- Preventing market disruption from high-frequency order placement and cancellations
Following Binance’s investigation report, MOVE’s price spiked.
MOVE Price Surged
The coin’s price surged by over 4% today, before cooling down to current levels at $0.45, and a market cap of over $1.1 billion.
Before Binance released its note, MOVE was trading at $0.43, with a market cap of $1.06 billion, and the coin’s market cap hit over $1.13 billion in market cap following the exchange’s investigation release.
MOVE is up by almost 6% in the past 24 hours, boosted by Binance’s actions.
Movement (MOVE) was the third project on Binance’s airdrops portal.
