Coinbase Halts Trading of MOVE Token
On May 15, 2025, Coinbase made the decision to halt trading of the Movement (MOVE) token, influenced by alarming reports of market manipulation involving a large-scale sell-off of 66 million MOVE tokens within a single day. This abrupt action prompted Movement Labs, the creators behind the cryptocurrency, to engage a third-party auditor for a thorough investigation into the events that transpired. Prior to the suspension, Coinbase had implemented a limit-only trading mechanism for MOVE, effectively preventing users from executing market orders, which hinted at an impending delisting for this Ethereum Layer 2 asset.
Market Manipulation Allegations
The Movement Foundation issued a statement highlighting a significant issue — a $38 million sellout orchestrated by the market maker Web3Port was executed without the consent of Movement Labs, constituting a blatant violation of their contractual agreement. In response to these developments, Binance took proactive measures, freezing the profits accrued by the market maker and suspending Web3Port’s account to safeguard investors in the crypto space.
Controversial Agreements and Aftermath
Furthermore, leaked documents brought to light a controversial agreement formed between Rentech, acting on behalf of Web3Port, and Movement Labs. This contract, established on December 8, 2025, permitted Web3Port to borrow and sell up to 5% of MOVE’s total supply without necessary oversight.
As a result of the turmoil in the market and the subsequent suspension by Coinbase, the MOVE token witnessed a dramatic decline in value, plummeting 20% at the announcement of its delisting. The price continued to stagger, ranging between $0.20 and $0.18, before sinking even further with a 15% dip recorded the following week, ultimately hitting an all-time low of $0.154 and dragging the token’s market capitalization below $400 million. This downturn took place despite Bitcoin’s surge to nearly $97,000 at the time, with MOVE enduring relentless selling pressure that overshadowed the broader market rally.
Impact on Movement Labs
Founded by former Vanderbilt University students Rushi Manche and Cooper Scanlon, Movement Labs once boasted a market cap of $2.5 billion during the token’s peak. However, following the allegations of market manipulation and the fallout from Coinbase’s actions, MOVE is now valued at less than 20% of its all-time high. The disruption caused by these events is considered one of the most significant losses for the token since it was created.
Future Considerations and Actions
The repercussions of the MOVE situation may lead cryptocurrency exchanges to rethink their listing policies, assessing what attributes are necessary for new offerings based on their viability, security, and potential for market acceptance. Regulatory bodies in finance are expected to scrutinize such events closely, aiming to ensure that newly listed tokens on exchanges meet safety standards for investors.
In light of these developments, Movement Labs took decisive actions by dismissing co-founder Rushi Manche and engaging auditing firm Groom Lake to probe into the questionable activities linked to Web3Port. They also introduced Move Industries, designed to lead the development efforts of the Movement Network. Token holders are advised to remain alert for updates regarding the audit findings and possible future developments, including a proposed buyback program with proceeds recovered from the market.
