WuBlockchain
Movement Labs has filed for bankruptcy, according to DeFiLlama data. The Movement blockchain, which raised a combined $141.4 million across funding rounds, has produced almost no on-chain revenue to show for it: daily app revenue has stayed below $800 since November, daily chain fees have hovered in the single digits, and DeFiLlama recorded just $1 in fees over the past 24 hours.
Why it matters
The collapse is the textbook example of a VC-funded L1 that shipped infrastructure without ever finding product-market fit. A nine-figure raise against effectively zero revenue is the kind of imbalance investors in the rest of the sector will now read against every other high-FDV infrastructure token. The token's $107 million FDV represents a drop of more than 99% from its all-time high, meaning late-stage backers were marking the position down long before the bankruptcy filing made it official.
Market impact
Movement sits in a category of foundation-issued tokens whose valuations are anchored more on fundraising milestones than on cash flow. Chapter-style restructurings of foundation-led L1s are rare, so the precedent matters: it sets the floor for what a "failed" raise actually looks like on-chain, and what rights token holders, employees, and creditors will each walk away with. Watch the docket for which creditors (founders, VCs, foundation) sit in front of the operating entity, and whether $MOVE itself ends up on the asset list being liquidated or is treated as a foundation-controlled asset outside the estate.
Source: [Movement - DeFi TVL, Fees, & Revenue - DefiLlama](https://defillama.com/chain/movement)
Frequently asked questions
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How much did Movement Labs raise before filing for bankruptcy?
Movement Labs raised a combined $141.4 million across its funding rounds before filing for bankruptcy, against near-zero on-chain revenue on the Movement chain.
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How much revenue did the Movement blockchain actually generate?
According to DeFiLlama, daily app revenue on the Movement chain has stayed below $800 since November. Daily chain fees have hovered in the single digits, and just $1 was recorded over the past 24 hours.
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What is the current fully diluted valuation of the MOVE token?
The MOVE token carries a fully diluted valuation of $107 million at the time of the bankruptcy filing, a decline of more than 99% from its all-time high.
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Why is the Movement bankruptcy significant for the wider L1 sector?
It is one of the clearest recent examples of a VC-funded Layer-1 network shipping infrastructure without finding product-market fit, and the filing sets a precedent for how foundation-led L1s handle creditor hierarchies and token-holder rights in restructurings.
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What should investors watch in the Movement bankruptcy proceeding?
Key questions for the docket are which creditors sit ahead of the operating entity, whether the MOVE token ends up on the liquidated asset list or is treated as a foundation-controlled asset outside the estate, and how employee and foundation claims are prioritized.
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