Coinbase's Decision to Delist Causes Movement's MOVE Token to Hit Record Low Amid Market-Making Controversy

The MOVE token, associated with the Ethereum-based Movement Network, experienced a significant decline, reaching a record low after Coinbase decided to delist it amid ongoing allegations regarding dubious market-making practices.

On May 1, the cryptocurrency exchange announced that it would halt MOVE trading by May 15, citing the token’s inability to conform to its listing requirements.

Prior to this suspension, Coinbase indicated that MOVE’s trading would transition to limit-only mode, allowing users to modify or cancel existing orders without processing new transactions.

This decision resulted in a 23% drop in MOVE’s price, hitting an unprecedented low of $0.18, which further contributed to a monthly devaluation of over 50%. The token is now nearly 84% lower than its peak price of $1.21 in December 2024.

Internal issues within Movement

Further complicating the situation, Movement Labs placed co-founder Rushi Manche on suspension on May 2, following an inquiry into suspicious market-making actions that led to a token sell-off.

The organization stated that this decision was influenced by recent developments and confirmed the continuation of internal investigations.

This inquiry emerged after Binance took steps to freeze funds associated with an unidentified market maker responsible for a significant MOVE token sale in December.

In an effort to regain confidence, the Movement Network Foundation terminated its association with the market maker and initiated a $38 million buyback program aimed at creating the Movement Strategic Reserve.

While Binance did not disclose the involved party, a recent report identified Web3Port as the market maker associated with the MOVE transactions.

The report detailed that a company named Rentech played a role in both sides of the transaction, acquiring 66 million MOVE tokens and subsequently selling them in December 2024, which led to the steep price decline.

In light of the aftermath, Movement Labs engaged the Web3 intelligence firm Groom Lake to undertake an external review, with plans to implement new governance strategies based on the findings.

Comments from Manche

In the midst of the unfolding situation, suspended co-founder Manche expressed his frustration regarding the current status of the network.

He remarked:

“Movement has deviated far from the dream I had and it hurts me to see it like this.”

Though he refrained from detailing the exact changes, Manche asserted that all agreements with market makers had the full backing of the foundation’s leadership. He accused malefactors of exploiting the circumstances for their financial gain.

Nevertheless, he conceded that errors occurred, admitting that external influences impacted decision-making, particularly concerning financial management, deal negotiations, and staffing choices.

He commented:

“We trusted the wrong advisors, market makers, and individuals during a bear market. I personally relied on opportunistic administrators who acted as hidden decision-makers with their own financial interests.”

He also emphasized that he never sold or engaged in over-the-counter trading of MOVE tokens, clarifying that all funds procured were through venture funding to facilitate Movement’s expansion.