Bankruptcy Shock for Crypto Giant with $141 Million Investment: Daily Revenue Only $1!
Movement Labs has filed for bankruptcy after failing to generate revenue and seeing its token value plummet by 99%, despite raising a massive $141.4 million in investment.
Movement Labs, which set out with high hopes in the crypto world and raised $141.4 million in funding from venture capital (VC) firms, has officially thrown in the towel after failing to achieve financial sustainability. The fact that the Movement network—the project behind it—saw its on-chain revenue streams drop to nearly zero despite the massive capital raised has reignited debates over the reliability of investment models in the sector.
According to DeFiLlama data, daily application revenue on the network has steadily remained below $800 since November of last year. More strikingly, daily transaction fees on the network have stayed in the single digits for months, recorded at just $1 in the last 24 hours. Looking at the shared data, while the total value locked (TVL) on the network appears to be at the $133.52 million level, this liquidity has not translated into real revenue generation.
Movement Labs Bankruptcy and the Future of VC-Backed Projects
The project’s native token (MOVE) has lost more than 99% of its value since its all-time high. According to current data, while the token price has dropped to the $0.011 level, the project’s fully diluted valuation (FDV) sits around $107 million. The fact that only $1 in daily revenue is being generated despite a massive capital injection of $141 million exposes the deep cracks in the project’s economic model.
This collapse serves as a serious warning, especially for projects that receive high funding but fail to build a user base. The Movement Labs example proves that capital power alone is not enough for a network’s survival, emphasizing the importance of real utility and sustainable revenue models. For investors, this situation has been a bitter lesson showing that even venture capital-backed projects can experience a major collapse at any moment.