Movement Labs files for bankruptcy after failure of $141 million

Movement Labs, the developer behind the Movement blockchain network, has filed for bankruptcy. The company raised a total of $141.4 million in funding, but has failed to earn back even a fraction of that investment. Daily on-chain revenue has been virtually zero for months.

Hardly any revenue despite hundreds of millions in funding

According to data from DeFiLlama, daily application revenue on the Movement network has been consistently below $800 since November last year. On-chain fees have been fluctuating around a few dollars for months, and in the past 24 hours only $1 in fees has been recorded. Chain revenue over the same period also stands at $1.

Total value locked in DeFi on the network currently stands at $133.52 million, and DEX volume over the past 24 hours amounts to $181.581. These are modest figures for a project that managed to attract hundreds of millions in funding. The stablecoin market capitalisation on the network stands at $38.96 million.

MOVE token loses almost all value

The MOVE token is currently trading at $11, with a market capitalisation of $44.8 million and a fully diluted valuation of $107.51 million. That last figure still sounds reasonable, but compared to the all-time high, this represents a loss of more than 99%. Investors who entered early have seen their investment almost completely evaporate.

The bankruptcy of Movement Labs shows how difficult it is to make a new blockchain network viable, even with large amounts of venture capital. While other networks such as Robinhood Chain have managed to attract $700 million in on-chain assets in a short time, Movement has failed to generate enough users or activity to sustain operations. The project is now considered one of the most visible failures of the current crypto season.