May 3, 2025 — The MOVE token, issued by Movement Labs as part of its Movement Layer-2 blockchain protocol, is undergoing a major crisis following a series of scandals, exchange suspensions, and community backlash that have rocked investor confidence and sent the token’s price plummeting.
Coinbase Suspension Triggers Price Crash
On May 1, Coinbase announced it would suspend MOVE trading starting May 15, citing noncompliance with listing standards. The decision came after reports surfaced of potentially manipulative market-making agreements. Following the news, MOVE dropped by up to 20%, hitting an all-time low near $0.19, with its market cap falling below $500 million.
Market Manipulation and the Web3Port Deal
Investigations revealed that Movement Labs had entered into a controversial agreement with Web3Port, enabling a middleman, Rentech, to offload 66 million MOVE tokens—over 5% of total supply—netting $38 million in profit. This triggered a steep sell-off shortly after MOVE’s launch in December 2024. Binance responded by banning Web3Port and offboarding the associated market maker in March 2025.
Co-Founder Suspended Amid Fallout
On May 2, Movement Labs suspended co-founder Rushi Manche following allegations of his involvement in the market-making deal. The move was seen as an attempt to distance the project from internal governance failures, though many community members view it as too little, too late.
Community Distrust Reaches Boiling Point
Across social media, especially on X, users labeled MOVE a “scam,” citing poor transparency, governance concerns, and delayed airdrop distributions. Despite clarifications that Coinbase’s move was a suspension—not a full delisting—public sentiment remains largely negative.
Buybacks and Political Ties Offer Limited Support
Earlier efforts by Movement Labs to stabilize the token—including a $38 million buyback and the creation of a Strategic Reserve—briefly boosted prices. Political intrigue also entered the picture in January 2025, when Trump-affiliated World Liberty Financial acquired $1.9 million worth of MOVE. However, these events failed to counteract the long-term damage from the scandal.
Airdrop Delays Add Fuel to the Fire
As of May 2, 740 million MOVE tokens remain queued for distribution to users who chose to receive a 25% bonus on the Movement network. Delays have only worsened community dissatisfaction, especially as the token trades over 81% below its all-time high, with a questionable fully diluted valuation of $2.2 billion against a modest $125 million in total value locked.
Outlook
The MOVE token’s collapse underscores deeper challenges in crypto project governance and transparency. While Movement Labs continues to explore damage control strategies, regaining trust in the face of regulatory scrutiny and internal controversy remains an uphill battle.
