The native token of the Ethereum-based Movement Network, MOVE, plunged to a historic low following Coinbase’s delisting amid the ongoing controversy tied to questionable market-making activities.
The US crypto exchange announced on May 1 that it would suspend MOVE trading across its platforms by May 15, citing the token’s failure to meet its listing standards.
Before the upcoming suspension, Coinbase said it would place MOVE order books in limit-only mode, which would allow its users to set or cancel orders without executing new trades.
Coinbase’s move sent MOVE’s price tumbling by 23% to an all-time low of $0.18 and further deepened its losses to over 50% in the past month. This places the digital asset nearly 84% below its December 2024 all-time high of $1.21.
Movement’s internal turmoil
Adding to the project’s woes, Movement Labs suspended co-founder Rushi Manche on May 2 amid an ongoing investigation into suspicious market-making activities that triggered a token dump.
The firm stated that the decision was made in light of unfolding events and confirmed that the internal investigations remain active in the case.
The investigation follows Binance’s earlier action to freeze funds linked to an unnamed market maker that offloaded a large amount of MOVE tokens in December.
To restore trust, the Movement Network Foundation ended its relationship with the market maker and launched a $38 million buyback initiative to establish the Movement Strategic Reserve.
Although Binance did not name the party involved, a recent CoinDesk report identified Web3Port as the market maker behind the MOVE distribution.
The report further revealed that a firm called Rentech was involved on both ends of the agreement, enabling it to collect the 66 million MOVE tokens. Rentech reportedly sold the tokens in December 2024, contributing to the sharp price drop.
In response to the fallout, Movement Labs hired Web3 intelligence firm Groom Lake to conduct a third-party review. The company will adopt new governance measures based on the audit’s results.
Manche speaks out
Amid the ongoing controversy, Movement’s suspended co-founder Manche broke his silence, expressing disappointment with the network’s current state.
He said:
“Movement has deviated far from the dream i had and it hurts me to see it like this.”
While he didn’t provide specifics on how the project changed, Manche claimed that all decisions regarding market makers were made with full approval from the foundation’s leadership. He blamed bad actors for manipulating the process and profiting by playing both sides.
However, he admitted that mistakes had happened, claiming that shadow actors influenced decisions while deflecting accountability, managing treasury funds, negotiating deals, and hiring key personnel.
Manche said:
“We trusted wrong advisors, mms, and folks going into a bear market. i personally trusted opportunistic administrators who acted as shadow decision makers behind the decisions with their own financial motives.”
He also clarified that he never personally sold or over-the-counter (OTC) traded any MOVE tokens. He said all funds raised were secured through venture rounds to support Movement’s growth.
Mentioned in this article
Credit: Source link
