On-chain data analyst Yu Jin pointed out on social platform X on Wednesday that the projects MyShell, GoPlus, and Movement, which were recently required to repurchase tokens due to market maker violations of net selling behavior, are currently in the process of repurchasing.
According to a previous report by Zombit, the Binance exchange recently issued an announcement regarding the market maker violations of Movement, revealing that the market maker carried out large-scale dumping of MOVE tokens after the listing, while there were very few buy orders during the same period, significantly impacting market liquidity and price stability, with illegal profits amounting to as much as $38 million. According to KOL Chen Jian, the institution is the same as the market maker of MyShell and GoPlus, which were previously investigated by Binance, and both are from the Shanghai-based Chinese team Web3port.
Binance stated that multiple measures have been taken to curb such violations and mitigate their impact on users, including freezing relevant profits and notifying the relevant parties to cooperate with subsequent processing.
The artificial intelligence platform MyShell stated that the $8 million in profits generated by the market maker’s illegal trading of SHELL have been frozen in the Binance account, and these assets will be entirely used for the SHELL repurchase program. According to Yu Jin, the MyShell team has already repurchased 21.95 million SHELL (worth approximately $5.96 million) from Binance since March 13.
Cybersecurity company GoPlus’s repurchase fund for its GPS token is $4.34 million, and the company has just withdrawn the first batch of repurchased tokens, totaling 34.9 million (approximately $1.12 million). The GoPlus team stated that the repurchase process is ongoing, and all purchased tokens will be burned together once the repurchase is completed.
The repurchase fund for the Movement Network’s MOVE blockchain is $38 million, and they have already repurchased 10 million MOVE (approximately $5.44 million).
According to CinMarketCap data, the price trends of SHELL, GPS, and MOVE are very similar. They experienced a slight increase within a few days after listing, but then all underwent significant declines. However, after these teams announced their repurchase plans, the prices of the three tokens showed significant increases within a short period.
