Movement Co-Founder Rushi Manche Suspended Amid Market Maker Investigation
Movement Labs has faced significant developments concerning its MOVE token and market maker activities.
- The MOVE token was involved in alleged misconduct linked to market maker Web3Port, leading to a 74% decline in value from $1.12 to $0.29.
- Co-founder Rushi Manche has been suspended due to governance issues related to the market maker's actions.
- Web3Port sold 66 million MOVE tokens worth $38 million on the token’s Binance listing day, prompting Binance to ban the firm after it generated substantial profits.
- Movement condemned these actions as unauthorized and initiated a $38 million buyback program to restore liquidity to its ecosystem.
- Coinbase announced the suspension of MOVE token trading as its price dropped to $0.19, a 21% decrease within 24 hours.
CoinDesk reported that Movement's contract with Web3Port allowed the market maker to liquidate positions under certain conditions, which led to misalignment of incentives and accusations of misleading agreements.