Coinbase to Suspend Trading of the MOVE Token, Citing Concerns Over the Token's Compliance with Its Listing Standards

The Movement Network Foundation launched an internal investigation into a controversial deal involving Movement Labs and a market-making firm, Web3Port.

Coinbase is suspending trading of the MOVE token, the native asset of the Movement Network, on May 15, citing concerns over the token’s compliance with its listing standards.

In a post on X, Coinbase said that trading for MOVE will be halted across all its platforms, including Coinbase Exchange, Prime, and both Simple and Advanced Trade. The token’s order books have already been swapped to limit-only mode, allowing orders to be placed and canceled, but restricting trades to set prices.

This move comes amid an internal investigation launched by the Movement Network Foundation into a controversial deal involving Movement Labs and a market-making firm, Web3Port. A third-party review is currently being carried out by independent cybersecurity firm Groom Lake.

Reports claim that a company named Rentech, allegedly linked to both Movement and Web3Port, was given access to more than 66 million MOVE tokens. The tokens were offloaded shortly after MOVE’s December 2024 launch, putting $38 million in downward pressure and sending the token into a prolonged slump. MOVE has fallen another 14% in the last 24 hours and is now trading around $0.20.

Crypto outlet CoinDesk reported on the investigation, which suggests that the token distribution strategy may have been set up to encourage manipulation. Internal documents reportedly show that Rentech had liquidation rights that gave it the ability to dump tokens if they fell below a predetermined price.

Coinbase’s decision to suspend trading in response to the investigation will likely have a knock-on effect on the broader crypto market, especially given that the broader crypto market climbed 4.4% during the same period.

The saga has drawn attention as Binance previously banned Web3Port following revelations that wallets linked to the firm liquidated a large chunk of MOVE tokens immediately after its listing.

Coinbase said it routinely assesses assets to ensure they meet its listing criteria, and the suspension of MOVE will take effect at 2 p.m. PT on May 15.