Movement Labs bankruptcy: $141 million in financing is difficult to buy a viable blockchain

Shocking data

Movement Labs raised $141.4 million from investors, but its fully diluted valuation plunged more than 99% from an all-time high to $107 million. Daily online fee income in the past 24 hours? Only $1. Since November last year, its app revenue has never exceeded $800 a day. According to the project weekly report, the company has now filed for bankruptcy.

This incident reflects a broader trend: during the last bull market cycle, a large number of projects that received nine-figure capital reserves were gradually breaking down after failing to find a market fit. Earlier this week, DEX aggregator Odos announced that it would permanently shut down all services on July 30 and urged users to withdraw funds or export private keys before then. Not all closures will be called bankruptcy, but the essence is the same-capital alone cannot create demand. In contrast, the currently most active chains show very different metabolic patterns, as can be seen in this week's latest developer activity rankings.

Worldcoin sells $52.5 million in WLD at a 36% discount

The Worldcoin Foundation sold 217.4 million WLD tokens to institutional investors including Pantera Capital, raising approximately $52.5 million. The actual price of the transaction was approximately US$0.24 per piece, which was approximately 36% discount to the spot market at that time. These tokens come from the team wallet and are now distributed to multiple addresses with a one-year lockup period.

The Worldcoin Foundation emphasized that the WLD sold does not represent the equity or profit interest of Tools for Humanity, the main developer of the project. The proceeds will be used specifically to expand World ID technology for businesses and consumers and AI agents. The network currently reports more than 39 million users, of which more than 18 million are verified by Orb. Still, conducting large over-the-counter transactions at large discounts suggests that funds need to raise cash without impacting the order book, a move that often implies liquidity management rather than purely strategic allocation.

Cross-chain Bridge was attacked, token prices plunged 30%, and exchange accounts were frozen.

Wanchain's cross-chain bridge to Cardano was attacked, stealing approximately 515 million NIGHT tokens, worth approximately US$9 million, from the bridge's funds. The vulnerability stems from non-monojective encoding of signed messages in the TreasuryCheck verifier. By directly splicing 14 variable-length fields to build the signature payload, the system allows different field combinations to produce the same byte sequence, triggering a signature replay attack.

This incident caused the NIGHT token to plummet by more than 30% in 24 hours, reaching as low as US$0.0158. The Midnight Foundation said that several exchanges, including Binance, Kraken, KuCoin, Bybit, OKX, Gate and MEXC, have frozen relevant accounts, blacklisted attacker wallets, and suspended NIGHT's replenishment and withdrawal services if necessary. The foundation pointed out that the core network and underlying assets were not affected, but this vulnerability once again weakened the market's confidence in third-party bridging solutions, adding to the list of bridging attacks that plague multi-chain users.

Access to compliance infrastructure and institutions

Not all progress this week points to failure. Uniswap Labs announced the launch of Permissioned Pools, a new set of hook standards built on Uniswap v4 that allows asset issuers to manage whitelists at the protocol level without relying on front-end or off-chain controls. The design verifies wallet permissions every time you transact and add liquidity, and leverages v4 's virtual accounting capabilities to secure licensed assets. The first partners include Superstate, Securitize and Dowgo, adopting the ERC-3643 standard. The move is in line with a larger trend of tokenization, where regulated assets are migrating onto the chain.

In terms of exchanges, three weeks after Robinhood Chain was launched, the total assets on the chain reached US$700 million, of which stablecoins accounted for US$430 million. About US$200 million is stored in Morpho, which is now integrated directly into the Robinhood app, allowing users to earn approximately 7% annualized revenue without using a separate Robinhood wallet. This way of providing revenue natively within mainstream brokerage applications is precisely the bridge between traditional finance and DeFi that many projects have promised but rarely achieved. Another sign of institutional engagement is that LayerZero has partnered with payment infrastructure company Keeta to support cross-chain transfers of tokenized commercial bank deposits between Ethereum, Solana, Base and Keeta networks. Keeta plans to launch stablecoins linked to nine fiat currencies later this month.

The polarization trend is extremely obvious. Some former star projects have filed for bankruptcy or sold tokens at a discount, while others are building underlying facilities that connect regulated capital and chain tracks. The industry is not shrinking-it is being reshuffled.