Decrypt's Hot take on the sank Movement (MOVE) token
Ethereum L2 Token Faces Removal Following Announcement by Coinbase
Listen up, folks, ‘cause things just got juicy in the crypto world! The native token of Ethereum layer-2 network Movement, MOVE, took a nose dive to an all-time low price on Thursday after the big player, Coinbase, announced its suspension of MOVE trading.
You heard it right! Coinbase, one of the biggest names in the game, dropped the bombshell on X, formerly Twitter: "We're gonna suspend the trading of Movement (MOVE) on May 15, 2025, around 2 PM ET. Why, you ask? Well, we've been keeping an eye on the assets on our exchange to ensure they meet our listing standards, and that's exactly what we're doing now with MOVE."
As a result, MOVE plummeted nearly 14% to a price of $0.2079, according to CoinGecko, making it the lowest price to date recorded by the crypto data provider, and that's no cherry on top! The Movement token first hit the scene in December alongside the debut of the project's mainnet beta. Woah, talk about a rollercoaster ride!
So, what's the reason behind this brutal decision? Coinbase isn't exactly singing a happy tune about Movement, and neither is it letting Movement Labs and the Movement Network Foundation off the hook. The exchange remained tight-lipped, but a spokesperson said Coinbase has nothing to add to its suspension statement released on Thursday.
The trigger might just be a report from CoinDesk released earlier this week, which sheds light on some shady dealings involving Movement Labs. It alleges that Movement Labs may have been deceived into signing a market-making agreement that ultimately led to 66 million MOVE tokens being sold on the open market. Oh boy, that's a lot of tokens!
You know who else isn't exactly whistling a happy tune? Binance! In late March, that exchange notified users that it had offboarded a market maker from its platform due to, you guessed it, misconduct. The same market maker, they say, sold 66 million MOVE tokens in December while placing "little buy orders." This puppet show of a market maker reportedly cashed out a cool $38 million before Binance kicked it off the platform last month.
In the midst of all this chaos, the Movement Network Foundation announced that it would use the frozen funds to facilitate a buyback program and "establish the Movement Strategic Reserve." You'd think that'd be a good thing, but with all the controversy swirling around, they've got quite the mountain to climb to regain people's trust.
The Movement Network Foundation, Movement Labs, and Rushi Manche are all under heavy scrutiny as the third-party review continues, while the MOVE community remains glued to its official Telegram channel in search of updates.
But hey, there's always a silver lining, right? Ali Hosseini, a community manager for Movement, offered a bit of hope, emphasizing that a suspension is not necessarily the same as a delisting.
"No delist... Only trading will be suspended," he wrote. "The team is actively working to negotiate with Coinbase and resolve the issues."
Whew, that's one heck of a ride! Stay tuned, folks, because we'll keep you updated as new developments unfold!
Editor's note: This story was updated after publication to add further details.
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Edited by Andrew Hayward
- The MOVE token, the native token of the Ethereum layer-2 network Movement, saw a significant drop following Coinbase's suspension of MOVE trading.
- Coinbase, a prominent name in the cryptocurrency market, announced the suspension of MOVE trading on May 15, 2025, citing concerns about the token meeting listing standards.
- The suspension led to a steep decline in the price of the MOVE token, reaching an all-time low of $0.2079, according to CoinGecko.
- The decline in MOVE's price may be linked to a report from CoinDesk, which suggests that Movement Labs may have been deceived into signing a market-making agreement.
- Binance, another significant player in the crypto market, had earlier offboarded a market maker for misconduct, who allegedly sold 66 million MOVE tokens in December.
- The Movement Network Foundation, in response to the controversy, announced a buyback program to "establish the Movement Strategic Reserve," in an attempt to regain people's trust.
- Despite the suspension and ongoing controversy, Ali Hosseini, a community manager for Movement, expressed optimism, stating that the suspension does not necessarily mean delisting, and the team is actively working to resolve issues with Coinbase.
