MOVE Token of Ethereum-based Movement Network Has Tumbled to Unprecedented Depths

The MOVE token of the Ethereum-based Movement Network has tumbled to unprecedented depths following Coinbase's announcement of its imminent delisting on May 15, 2025.

Coinbase is set to delist the MOVE token of the Ethereum-based Movement Network (CRYPTO: MOVE) on May 15, 2025, the exchange announced on Monday.

What Happened: Coinbase (NASDAQ:COIN) will suspend trading in Movement at 2 PM ET on May 15, according to a notice from Coinbase.

“We regularly monitor the assets on Coinbase to ensure they continue to meet our listing standards. Based on recent reviews, we will suspend trading for Movement (MOVE) on May 15, 2025, at 2 PM ET,” Coinbase announced.

Earlier this month, Coinbase placed MOVE in limit-only mode after it was going to be delisted.

The development comes after allegations of a $38 million token dump and an exploitative market-making arrangement.

Coinbase had been planning to delist MOVE in April but later announced the suspension of new trades in the token.

The exchange is also shutting down its institutional market-making service, Pivot, as part of a broader restructuring effort.

Why It's Important: Coinbase’s decision to suspend all new trades in MOVE came after internal documents revealed Movement Labs had signed an agreement granting a third-party intermediary an unbalanced level of influence.

The agreement, which involved Web3Port and an unnamed firm, which is reportedly Rentech, allegedly provided the latter company with the right to dump large quantities of MOVE once the token’s fully diluted valuation reached $5 billion.

However, shortly after MOVE made its exchange debut, Rentech reportedly engaged in rapid selling, triggering a decline in the token’s price.

This move eroded investor confidence within hours, leading to several community members raising concerns about the implications for broader market stability.

Movement Labs responded by announcing the establishment of a $38 million reserve fund to be used for buying back MOVE tokens.

However, critics have pointed out that no tangible actions have yet been taken to implement this buyback strategy.

Furthermore, Binance (CRYPTO: BNB) announced the freezing of funds linked to the same market maker, adding to the worries about the project’s governance and transparency.

Highlighting the occurrence of staff misconduct in trading, Binance (CRYPTO: BNB) announced the detection and subsequent suspension of one of its employees for engaging in illicit activities.

According to a statement by Binance on Saturday, their Internal Audit team on March 23 received a complaint concerning a staff member's involvement in front-running trades.

The complaint alleged that the staff member was privy to insider information from a market-making firm with which Binance had an agreement.

The complaint also implicated the staff member in personally engaging in trades ahead of Binance's trades, an act which constitutes a clear violation of Binance's policies.

“After a preliminary investigation, we have substantial evidence to believe that the complaint is valid and that the staff member did indeed engage in the reported behavior. As such, Binance has made the decision to suspend the employment of this staff member, and we will be pursuing further legal action.”

Also Read: Binance Detects And Suspends Staff Member For Misconduct Involving Insider Trading

In a separate development, Movement Labs announced the suspension of co-founder Rushi Manche amid an independent review by intelligence firm Groom Lake.

"We can confirm that Rushi Manche has been suspended from Movement Labs. This decision was made in light of recent events and as the third-party review is still being conducted by Groom Lake regarding organizational governance and recent incidents involving a market maker."

Manche himself took to Telegram to distance himself from the token dump, claiming that "bad actors" manipulated agreements and that he had no involvement in any off-market sales.

Despite his assurances, the sudden leadership upheaval has only heightened the uncertainty surrounding MOVE’s strategic direction and governance reforms.

After Coinbase announced it would be suspending trading in Movement (CRYPTO: MOVE) on May 15 and delisting the token, the token dropped over 20%.

It hit a 24-hour low of $0.1775, marking a new all-time low for the token. At press time, it was trading at $0.1985, still down 86% from its December 2024 peak of $1.45.

The move comes after a tumultuous few months for Movement, which has been embroiled in a number of scandals, including allegations of market manipulation and a $38 million token dump.

Coinbase is shutting down its Pivot institutional market-making service as part of a broader restructuring effort. The exchange announced in April that it would be phasing out Pivot and plans to complete the process by 3Q24.

Pivot was launched in 2022 to expand Coinbase's institutional offering and provide liquidity to institutional investors. However, the service faced criticism for its role in the Movement token debacle.