Movement Labs Suspends Co-Founder Amid 86% Token Plunge
1min read Movement Labs, a prominent blockchain technology firm, has taken the significant step of suspending its co-founder, Rushi Manche, amidst allegations of involvement in the dumping of Movement [MOVE] tokens. The decision, announced on the 2nd of May, comes as a result of ongoing investigations into the incident, which has had a substantial impact on the token's value and the company's reputation.
According to an initial report, Web3Port Labs received 66 million MOVE tokens, representing 5% of the total supply. Following the token's debut on exchanges, Web3Port Labs allegedly dumped the entire stash, causing the token's value to plummet below $0.30. This action has raised serious concerns about the integrity of the token's market and the governance of Movement Labs.
The scandal deepened with the revelation that a firm known as Rentech had signed a deal with both Web3Port Labs and Movement Labs. It was through Rentech that Web3Portal acquired the 5% MOVE circulation supply that was subsequently dumped on exchanges. Allegations suggest that Manche played a pivotal role in pushing for the Rentech deal, further complicating the situation.
In response to these developments, Binance took the decisive action of banning the market makers' (MM) accounts that were involved in selling the token. This move underscores the severity of the allegations and the need for stringent measures to maintain market stability.
Ask Aime: What will happen to Movement Labs after co-founder Rushi Manche's suspension?
Manche, however, has denied any responsibility for the incident, instead implicating the entire Foundation team. In an X post on the 30th of April, he stated that any decisions made by market makers were approved and supported by the entire foundation team. He also mentioned that there were bad parties involved that corrupted the process by representing both sides to profit, and the team is in the process of investigating.
Adding to the turmoil, coinbase announced that it will suspend trading of the MOVE token on the 15th of May. This announcement triggered a 27% plunge in the token's value during the trading session on the 1st of May. Overall, the token has declined 86% from a record high of $1.4 to below $0.20, highlighting the significant impact of the scandal on the token's market performance.
Movement Labs, backed by world liberty financials (WLFI), is an Ethereum layer-2 blockchain. Despite the scandal, wlfi still holds 7.5 million MOVE tokens, worth approximately $1.3 million. This holding underscores the ongoing support for the token, even in the face of recent controversies.
