- Binance offboarded a market maker that dumped 66 million MOVE tokens.
- Movement Network Foundation announced a $38 million buyback program to support its system.
Leading crypto exchange Binance made an announcement today that it offboarded a market maker. The platform identified a market maker of the Movement crypto project that has ties with another market maker which is accused of misconduct.
As per its latest announcement on Tuesday, the aforementioned market maker dumped around 66 million MOVE tokens one day after the MOVE token listing on Binance. This brought a net profit of around $38 million USDT. The Binance platform identified and offboarded this market maker on March 18.
Market makers are crucial for trading purposes to maintain liquidity. They ensure that buy orders meet sell orders and vice versa to enhance the ease of trading. Market makers quote buy prices that are called bid prices and sell prices that are called ask prices.
The accused market maker was supposed to place orders for both bid and ask prices. However, it placed sell orders for 66 million MOVE tokens while placing little buy orders. This is called one-sided market making and is considered illegal. Hence, Binance took this action against the market maker and also forbade it from making further market-making activities on the platform.
Referring to the issue, Wu Blockchain reported that the market maker involved with the MOVE sell-off is Web3Port. And, its investments include Puffer, UXLINK, Bitlayer, among others.
Market Makers Must Follow Binance Principles
Apart from the announcement, Binance also clarified all the principles and rules market makers must follow to operate on its platform. Placing orders for both bid and ask, and ensuring sufficient order sizes within specified depth levels, are crucial. Binance also made it mandatory for market makers to maintain a healthy bid-ask spread and prevent market disruption.
Binance further stated,
“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.”
On the other hand, the Movement Network Foundation decided to establish a “Movement Strategic Reserve.” This is a 38 million USDT buyback program to purchase MOVE to support the Movement ecosystem.
Earlier today, Binance suspended an employee for insider trading allegations. The platform even awarded $100,000 for individuals who helped in finding out this information. Binance proves time and again its commitment to offering the best to its users and fosters its position in the market by the day.
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