Coinbase suspended Movement (MOVE) from live trading on May 15, 2025, after reports of a market manipulation where 66 million MOVE tokens were dumped in a single day on crypto retail. Movement Labs, the organization behind MOVE, has commissioned a third-party auditor to investigate the matter.
Before the Coinbase MOVE token delisting, the exchange enabled a limit-only trading mode on Movement. This restricted users from executing market orders on MOVE, signaling a looming suspension for the once promising Ethereum Layer 2 cryptocurrency.
Coinbase MOVE Token Delisting Timeline
Here’s a brief chronological overview of the key moments leading up to the MOVE token price drop and Coinbase delisting:
November 25, 2024: Rentech makes a market-making deal with Web3Port, with Rentech representing Movement, allegedly without Movement Labs’ approval.
December 8, 2024: Movement signs a market-making contract with Rentech, allowing market maker Web3Port to sell 5% of MOVE’s supply for a profit.
December 10, 2024: Web3Port sells 66 million MOVE for a $38 million profit, a day after MOVE was listed on Binance.
March 18, 2025: Binance offboards market maker Web3Port for its 66 million MOVE dump.
April 21, 2025: Movement Labs announces a third-party review into the MOVE token market manipulation.
May 1, 2025: Coinbase announces the suspension of MOVE token trading and sets the token in a limit-only trading mode.
May 15, 2025: Coinbase completes the delisting of MOVE.
Details on the Disputed Market-Making Contract
According to a statement by the Movement Foundation, Web3Port’s $38 million MOVE token selloff occurred without Movement Labs’ consent and breached Movement’s agreement with the market maker. Fortunately, Binance was able to freeze the market maker’s profits and terminate Web3Port’s account to protect crypto investors.
Several leaked documents revealed a strikingly unprecedented market-making contract between Rentech, acting as a middleman for Web3Port, and Movement Labs. The agreement, which was signed on December 8, 2025, allowed Web3Port to loan and sell 5% of MOVE’s total token supply.
Administrative Lapses Within Movement Labs
Another leaked document showed a market-making agreement between Rentech and Web3Port, with Rentech serving as a Movement representative. This deal was made prior to Movement Labs signing the December 8 agreement with Rentech, sparking confusion and allegations of collusion within Movement leadership.
Other sources point to a “shadow co-founder” involved in the market-making contracts with Web3Port and Rentech. In any case, the lack of transparency and mismanagement have tarnished the reputation of a former top Ethereum Layer 2 project contender.
MOVE Token Price Slumps 20% on Coinbase Trading Suspension
Following the Movement market maker controversy and subsequent Coinbase delisting, MOVE token’s price dropped by 20%. After consolidating within the $0.20 to $0.18 price range, MOVE’s price plunged further, falling by 15% the following week.
The L2 cryptocurrency bottomed at an all-time low of $0.154, bringing its market capitalization below $400 million. Despite Bitcoin’s price rally to $97,000 at the time, MOVE continued to experience significant selling pressure.
MOVE’s Collapse: Rising Ethereum L2 to Delisted Asset
The Movement Labs crypto startup was founded by Vanderbilt University dropouts Rushi Manche and Cooper Scanlon, who helped raise $38 million for the company. Then, Movement secured a spot in President Donald Trump’s World Liberty Financial crypto portfolio.
At all-time highs, MOVE had a $2.5 billion market cap. As of this writing, however, the token is now worth less than a fifth of its highest valuation. News of crypto market manipulation on the L2 token and its subsequent Coinbase suspension brought one of MOVE token’s most significant single-day losses since its inception.
The Broad Impact on Future Token Listings
Centralized exchanges vet new cryptocurrency projects differently, depending on what they deem suitable features that reflect their brand and offerings. For instance, Coinbase evaluates a project’s business viability, token security, and potential future market adoption.
The controversial events surrounding MOVE and the Web3Port market maker could signal a reassessment of crypto exchange listing standards. Financial regulatory firms may already be looking into these concerns and evaluating whether some tokens on exchanges are safe to invest in.
What Should MOVE Holders Do Now?
Amidst the selloffs and allegations, Movement Labs terminated its co-founder, Manche, and commissioned auditing firm Groom Lake to conduct a third-party review into Web3Port’s suspicious activities.
Additionally, Movement Labs launched Move Industries, a new organization that serves as the Movement Network’s primary developer. MOVE holders should stay tuned for the latest updates regarding the third-party review and MOVE milestones, including the USDT buyback Movement Network program involving the $38 million recovered proceeds.
Conclusion: Why Trust and Transparency Matter
The Movement Labs scandal and market manipulation dispute serve as stark reminders for crypto investors and project builders about clean insider governance and proper transparency. MOVE’s fallout showcases the immense risks in investing in a project that lacks clarity and trust.
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References:
Actions Taken on Market Maker Due to Market Irregularities (2024-03-25) (Binance News)
Movement Network Foundation Announces Third-Party Review Into External Market Maker Abnormalities (Movement)
Movement Network Foundation Statement (Movement)
Earn and Borrow Crypto | World Liberty Financial (World Liberty Financial)
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