Movement Labs Faces MOVE Token Delisting and Market‑Making Fallout
The post Movement Labs Faces MOVE Token Delisting and Market‑Making Fallout appeared on BitcoinEthereumNews.com.
Key Takeaways: Coinbase will disable trading of the MOVE token on May 15, citing a routine listing standards review. A market‑making agreement with Rentech allegedly enabled a $38 million sell‑off and sparked conflict‑of‑interest concerns. Movement Labs has cut ties with the implicated market maker and launched a $38 million USDT buyback program while commissioning a third‑party investigation. Sudden Suspension of MOVE Trading Coinbase announced that it will suspend all trading of Movement’s native MOVE token effective May 15, transitioning order books to limit‑only mode earlier this week. Although Coinbase did not specify detailed grounds for the decision, the move followed a periodic review which concluded that MOVE no longer satisfied the exchange’s listing criteria. In the aftermath of the announcement, MOVE’s price plunged 20 percent, dipping to a low of $0.18 before stabilizing around $0.20 across major venues. MOVE drops 20% as Coinbase announces trading suspension Uncovering the Market‑Making Scandal The delisting decision came amid revelations that a third‑party market maker, identified as Rentech, may have manipulated MOVE trading. Reports indicate that Movement Labs entered into a contract granting Rentech control of 66 million MOVE tokens—approximately 10 percent of total supply—which it then allegedly dumped en masse, triggering steep price declines. Internal documents later disclosed that Rentech functioned both as an agent for the Movement Network Foundation and as a subsidiary of Web3Port, heightening conflict‑of‑interest concerns and eroding trust in governance. Emergency Buyback and Governance Reboot In response to the market‑making fallout, the Movement Network Foundation severed its relationship with Rentech and unveiled a $38 million USDT buyback initiative. This strategic reserve is designed to stabilize liquidity and restore confidence among token holders. Movement Labs has also retained an independent auditor to conduct a comprehensive review of the market‑making arrangement, with findings to be shared publicly upon completion. Actions Taken by Movement Labs: Cut ties with…
