Movement Labs Suspends Co-Founder Amid Market Maker Scandal, MOVE Token Plummets 22%

Movement Labs, the company behind the MOVE token, has suspended its co-founder Rushi Manche amidst ongoing investigations into market maker misconduct. The suspension comes after coinbase announced the delisting of the MOVE token, which has led to significant price shifts and raised concerns about the stability of the Movement Labs ecosystem.

The issues began with a market maker scandal involving Web3Port, which allegedly dumped 66 million MOVE tokens, resulting in a 20% decline in the token’s price. Additionally, Binance has penalized a market maker associated with Movement due to trading regulation breaches, freezing the entity’s profits amidst rising scrutiny.

Movement Labs has initiated a third-party investigation into the alleged misconduct of market makers related to the MOVE token, which coincided with Manche’s unexpected leave from the project. Despite this, Manche disputed reports of his departure, stating that he was still involved in the project and had missed a company offsite due to attending the Web3Festival in Asia. He also reiterated his engagement in ecosystem calls on Slack, despite temporary concerns about his account status.

The suspension of Manche raises questions regarding liquidity partner vetting processes and casts uncertainty over the future of the Movement ecosystem. Key voices, such as Mike Dudas, co-founder of The Block, have raised pertinent questions relating to involvement, highlighting potential systemic issues within the Movement Labs framework.

Sam Thapaliya, head of Zebec Protocol and longtime acquaintance of Manche and Cooper Scanlon, has been under scrutiny for his advisory role in the launch of the MOVE token. His association with a controversial market-making agreement has further highlighted potential systemic issues within the Movement Labs framework.

Manche has expressed a desire to clarify his position regarding recent events, implicating “opportunistic administrators” acting as quasi-decision-makers within the foundation. He suggested that these representatives have misled colleagues and made decisions discretely while others bear the consequences. In light of the ongoing turmoil, Manche strongly advised founders to collaborate with reputable firms that align with the project’s vision, stating that Movement Labs had considerably strayed from its core mission.

It remains uncertain whether Manche’s precise remarks prompted the suspension, as he had not responded promptly to inquiries. Notably, the anticipated MOVE airdrop scheduled for April 30 was delayed, further adding to the turmoil within the Movement Labs ecosystem.

The current trajectory of the MOVE token amid the suspension of Manche reflects deeper structural issues within the Movement Labs framework. This unfolding scenario serves as a warning to the crypto community about the importance of governance and accountability within blockchain projects. The MOVE token has witnessed a staggering 22% decrease in value just within 24 hours, trading approximately at $0.20 in the wake of the Coinbase delisting. The future of the Movement Labs ecosystem remains uncertain as the investigations continue and the community awaits further clarity from the company.