Movement Labs’s MOVE token tumbles 73% as Coinbase delisting follows $38M sell-off

Coinbase’s decision to delist the MOVE token on May 15 has intensified concerns around Movement Labs, the company behind the token.

The delisting follows a wave of controversy stemming from a $38 million USDT sell-off linked to a terminated market maker, leaked chats, and allegations of mismanagement.

Although Coinbase has not explicitly accused the project of wrongdoing, the timing aligns with growing scrutiny into Movement Labs’ governance and token practices.

Initially launched with high investor interest and major listings, MOVE quickly surged to $0.70.

But behind the scenes, concerns were building. Now, with the price plunging and confidence shaken, the spotlight has shifted from hype to accountability.

The fallout has reignited broader questions around due diligence on centralised exchanges, and whether decentralised finance projects are adequately transparent with investors.

Binance’s parallel action and community frustration have only deepened the crisis, leaving MOVE’s future in doubt.

Manipulation concerns

The MOVE token began as a well-funded project, gaining early momentum through major listings, including Coinbase.

However, it was hit hard by a $38 million USDT dump, reportedly linked to a market maker associated with Movement Labs.

Leaked internal documents and chat logs suggest that Rentech, a firm with ties to both Movement Labs and the market maker, may have influenced trading activity.

This raised suspicions of coordinated manipulation. In response, the Movement Network Foundation launched an internal probe and promised to buy back dumped tokens via a reserve fund—yet that process remains incomplete.

Exchange reactions

Coinbase moved MOVE into limit-only mode before confirming its full delisting.

Though the platform gave no explicit reason, the move came amid mounting evidence and market backlash.

Binance also took steps, banning Web3Port, a related entity.

In an effort to regain trust, Movement Labs pledged to buy back the tokens and proceed with an airdrop.

However, both plans have been delayed, fuelling more scepticism across the crypto community.

Price impact

MOVE fell over 20% to $0.18 after Coinbase’s delisting announcement, later stabilising at $0.20. Its market cap dropped below $500 million for the first time.

The token is now down 73% from its all-time high of $0.70.

This steep drop occurred despite a broader crypto rally, including Bitcoin hitting a 70-day high.

The divergence underscores how internal risks can eclipse favourable market trends. It was MOVE’s sharpest single-day decline since launching in December.

Community backlash

Within Movement’s Telegram channel, users expressed confusion and anger.

Some claimed they were misled, while others demanded answers on delayed airdrops and the buyback scheme.

A community manager stated the Coinbase action was a “suspension”, not a permanent delisting, and that talks were ongoing.

But with little progress on promised remedies, faith in the project continues to erode.

Unless Movement Labs restores investor trust and resolves outstanding commitments, the MOVE token could face further losses and additional exchange removals.

The post Movement Labs’s MOVE token tumbles 73% as Coinbase delisting follows $38M sell-off appeared first on Invezz