Coinbase Delists MOVE Token Amid Controversy

The post Coinbase Delists MOVE Token Amid Controversy appeared first on Coinpedia Fintech News

On May 15, Coinbase announced that it would delist the MOVE token, stating that it no longer meets the exchange’s listing standards. While coinbase information

coinbase
–
[email protected]

WalletCentralised Exchange

has not explicitly accused Movement Labs of misconduct, the timing follows a contentious $38 million token dump involving a now-terminated market maker.

Why Coinbase is Delisting $MOVE Token?

The MOVE token initially gained traction with significant funding, major exchange listings, and considerable hype. However, the project’s reputation was severely dented when internal documents suggested mismanagement within Movement Labs. Allegedly, Rentech, a firm tied to both Movement Labs and the disputed market maker, had undue influence over the token’s market behavior. A leaked chat and subsequent market manipulation exposed these flaws.

The $38 million USDT sell-off triggered a sharp decline in MOVE’s price, drawing the attention of the Movement Network Foundation, which has since initiated an independent investigation. To mitigate the fallout, a reserve fund was established to repurchase the dumped tokens.

Move Token Delisting

In response to these revelations, Coinbase acted swiftly, moving MOVE into limit-only mode before formally announcing its delisting. This decision has fueled skepticism surrounding the project’s governance practices, raising questions about the transparency of its token economy and the accountability of its executives.

Binance also reacted by banning Web3Port, and although Movement Labs pledged to repurchase the dumped tokens, it has yet to fulfill this commitment. The promised airdrop has also been delayed, adding to the growing discontent among the community.

Also Read :
MOVE Token Scandal News: Who & How Market Manipulation Led to Massive Price Drop
,

MOVE Price Impact

The price of MOVE suffered an immediate hit, falling more than 20% to $0.18 after the announcement. Although the price stabilized slightly at $0.20, the market cap of MOVE dropped below $500 million for the first time, reflecting investor concerns. At its peak, MOVE had reached $0.70, but it is now down by a staggering 73% from its all-time high.

Despite Bitcoin’s rally to a 70-day high, MOVE’s sharp decline emphasizes how project-specific issues can outweigh broader market trends. The steepest one-day drop since the token’s launch in December signals deepening mistrust in its future.

Community Response

The reaction within the Movement’s Telegram channel has been one of disbelief. While some users expressed gratitude for avoiding the token, others criticized it as another scam. A community manager clarified that the action was a “suspension” and not a permanent delisting, assuring users that talks with Coinbase were ongoing. However, trust in the project’s governance remains shaky, with many unsure about MOVE’s long-term viability.