Binance Offboards Market Maker Amid MOVE Token Misconduct Allegations
Binance has offboarded a market maker due to misconduct related to the MOVE token. Key points include:
- The market maker sold 66 million MOVE tokens with limited buy orders on December 12, earning $38 million USDT before being removed on March 18.
- Movement Labs plans to buy back $38 million worth of MOVE tokens.
- Movement Labs stated they were unaware of the market maker's actions and had previously worked with them based on past support for projects in their ecosystem.
- Crypto analyst ZachXBT identified the market maker as Web3Port, advising caution in future dealings with them.
- Binance's announcement linked this market maker to another entity involved in an ongoing investigation.
- Criticism surrounds Movement Labs regarding transparency and prior allegations of ties to questionable financial dealings.
- Movement Labs faces an $18.4 million lawsuit from a former financial relations chief for breach of contract.
Concerns about the trustworthiness of market makers in the crypto space have been raised by various analysts, highlighting the need for due diligence in partnerships.