Movement’s MOVE token was the market leader during East Asia’s morning trading hours, up over 25%, according to CoinDesk market data, as the market reacted favorably to Movement’s plan to create a Strategic Reserve.
MOVE is outperforming the CoinDesk 20 (CD20), a measure of the performance of the largest digital assets, which is trading flat. Market majors like bitcoin (BTC) and Ether (ETH) are both up less than 1%.
In a March 24 blog post, Movement explained it was creating the “Strategic Reserve” because they wanted to proactively rectify the disruption caused by the illicit actions of a market maker, who breached contractual obligations by conducting one-sided market-making activities and profiting $38 million without properly providing liquidity.
“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,” Movement said in a post.
As CoinDesk previously reported, crypto exchange Binance removed the market maker because it was placing substantial sell orders without meaningful buy orders, violating the exchange’s rules requiring balanced liquidity provision.
Binance said in a post that market makers must place balanced bid-ask orders, have sufficient market depth, stable spreads, and cautioned against disruptive high-frequency trading practices.
“Any project-authorized market makers who do not comply with or breach such principles and rules, Binance will take further actions against such market makers to best protect our users,” the exchange said.