Coinbase Suspension Sends MOVE to All-Time Low
Movement is attempting to bring in a token-buyback programme to control the damage.
Movement's MOVE token plunged 14% to a record low of $0.2079 on Thursday after major crypto exchange Coinbase announced plans to suspend trading of the Ethereum Layer-2 token.
This marks a devastating 80%+ collapse from the token's January high of $0.97, which was driven by a $1.85 million purchase from Trump-affiliated DeFi platform World Liberty Financial.
The suspension, scheduled for May 15, represents the latest blow for a project already reeling from allegations of market manipulation and mismanagement.
At the heart of Movement's troubles lies a market making scandal that has sent shockwaves through the project's community.
Movement Labs suspects it was deceived into signing a market-making agreement that resulted in the sale of 66 million MOVE tokens, worth approximately $38 million at the time.
The alleged culprit, market maker Rentech, has denied any wrongdoing in the affair, but the damage to investor confidence appears irreversible. Binance had previously taken action against the market maker, removing them from their platform in March while freezing their profits "for the purpose of compensating users."
Market makers are supposed to provide liquidity by placing both buy and sell orders, but Binance alleged that Rentech placed "little buy orders" while dumping millions of tokens — essentially profiting at the expense of retail investors.
Community in Crisis
Movement's Telegram channel erupted in panic following the Coinbase announcement, with community members questioning if the project could survive this latest setback.
Ali Hosseini, a community manager, attempted damage control by emphasising the difference between a suspension and a delisting, noting that "the team is actively working to negotiate with Coinbase and resolve the issues."
The distinction may provide little comfort to investors watching their holdings evaporate in real-time.
A Coinbase spokesperson declined to elaborate beyond the exchange's suspension announcement, while Movement Labs and the Movement Network Foundation have not responded to media inquiries.
The Recovery Plan
The Movement team isn't going down without a fight.
The Movement Network Foundation said it would establish a "Movement Strategic Reserve" using the frozen funds from Binance to facilitate a token buyback program.
The strategy mirrors similar initiatives from established cryptocurrencies, but whether it can restore confidence in a project plagued by scandal remains to be seen.