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| Movement Labs |
Market Fallout Raises Questions About Transparency and Token Allocation in Crypto Projects
Movement Labs has officially suspended its co-founder Rushi Manche. The move follows a steep price drop in the MOVE token and growing concerns over market manipulation.
The announcement came via X (formerly Twitter), where Movement Labs confirmed it is investigating alleged irregularities. A third-party market maker, reportedly tied to Web3Port, is accused of acquiring and dumping over 5% of the token supply. This triggered a sharp sell-off and damaged investor confidence.
Coinbase has delisted the MOVE token in response. Additionally, Binance previously banned the same market maker from its platform due to prior misconduct. This has further fueled concerns about the need for better regulatory scrutiny in decentralized finance.
In the last 24 hours, MOVE has plunged nearly 20%, according to CoinDesk. The token powers Movement Labs’ modular blockchain architecture built on the Move programming language. Investors now question the team’s oversight of token economics and liquidity strategy.
Industry experts emphasize that this case illustrates the risks of poorly managed token launches. Transparent allocation and trustworthy partners are now more critical than ever for emerging Web3 startups.
The crypto community is watching closely. Movement Labs must act swiftly to rebuild trust as it faces increasing pressure from regulators, exchanges, and investors.