Movement Labs Terminates Rushi Manche and Rebrands as Move Industries

Movement Labs has terminated co-founder Rushi Manche and rebranded itself as Move Industries following a market maker scandal that has sent its token price tumbling.

Movement Labs, the blockchain protocol behind the MOVE token, has terminated co-founder Rushi Manche and rebranded itself as Move Industries following a market maker scandal.

The company announced the leadership changes on Monday.

What Happened: The company said it is instituting a new leadership structure with Torab Torabi as CEO and ecosystem architect and Will Gaines as president and chief marketing officer.

Former co-founder and CEO Cooper Scanlon has voluntarily stepped down from his position as part of the restructuring. The protocol described these changes as “the beginning of an exciting new chapter for the Movement.”

The changes follow the suspension of Manche earlier this month following allegations of improper dealings with a market maker called Rentech. The allegations led to Coinbase Global (NASDAQ:COIN) delisting the MOVE token and suspending all related trading pairs.

The company also announced that it is forming a new reserve fund to support the ecosystem and that it will be making a $38 million buyback of MOVE tokens.

Related Link: Exclusive Interview: Movement Is Cutting Ties With Rentech After Troubling Report

Why It Matters: The company is trying to salvage its image and win back the trust of investors after a series of setbacks. The company's native token, MOVE, has plummeted in price since the beginning of the year, losing more than 90% of its value.

The token price decline began after revelations about improper market making activities. According to reports, Rentech allegedly sold 66 million MOVE tokens for an estimated profit of 38 million USDT in December last year.

Binance reported the issue, freezing the funds and notifying Movement Foundation and Movement Labs. In response, the protocol has severed all ties with the market maker and promised a 38 million USDT buyback through a new reserve fund.

The company is also planning to focus more on technology and community as its primary guiding principles. Move Industries will be holding more transparent town halls and introduce better vetting and verification systems for projects applying to join the ecosystem.

"This next chapter will ensure we continue building world-class infrastructure, world-class businesses and a world-class movement," said Gaines in a press statement.

The company is facing an uphill battle to recover from the scandal. Investors are furious about the lack of transparency and the company's handling of the situation.

Top Image: Movement Labs