Movement Labs Suspends Co-founder Rushi Manche Amidst Controversial MOVE Token Dump

Movement Labs made a significant decision to suspend its co-founder, Rushi Manche, following allegations that he was involved in the controversial dumping of MOVE tokens. This decision was made amid growing concerns about market manipulation and the resulting 27% drop in the price of MOVE.

Crypto project Movement Labs has suspended co-founder Rushi Manche following allegations that he was involved in the dumping of MOVE tokens.

The past few days have seen a rapid unfolding of events that have led to a 27% drop in the price of MOVE.

The crisis began when third-party organization Web3Port Labs received 66 million MOVE tokens, amounting to 5% of the total token supply, and began dumping its entire stash after the token debuted on exchanges.

This action saw the price of MOVE fall below $0.30, while Coinbase is set to suspend trading of MOVE on May 15.

In a statement on the 2nd of May, Movement Labs confirmed the suspension of Rushi Manche as part of an ongoing investigation into the scandal.

The probe, being conducted by Groom Lake, is focused on the alleged involvement of a market maker in the token dump.

The situation has also brought Rentech, a firm that had signed a deal with both Web3Port Labs and Movement Labs, into the spotlight.

It was through Rentech that Web3Port Labs received the tokens which were subsequently dumped.

Although Manche has denied any personal involvement, he hinted at internal issues within Movement Labs, suggesting that the entire foundation team might have been complicit in approving the deal.

In response, Coinbase will be suspending MOVE from its platform starting on May 15, further escalating the panic in the market.

This news saw the MOVE token spiral down by 27% during the trading session on May 1.

The price of MOVE has now fallen by a staggering 86% from its all-time high of $1.40, dropping to below $0.20.

However, the token did find some temporary support at a key trendline, which could be pivotal for its future.

Traders and investors are now focused on whether the token will hold above this support level or continue its downward trajectory.

Furthermore, the Ethereum (ETH) layer-2 blockchain backing Movement Labs, known as World Liberty Financials (WLFI), still holds a substantial amount of MOVE tokens.

According to Arkham data, WLFI still retains 7.5 million MOVE tokens, worth approximately $1.3 billion, despite the ongoing scandal surrounding the token.

The MOVE saga serves as a cautionary tale for the volatility and risks involved in the world of cryptocurrencies.

Once poised for significant growth, the project has faced a rapid downfall with the recent allegations of market manipulation and delisting by Coinbase putting the entire future of the token into question.