Big news has come out in the world of cryptocurrency. Movement Labs, the parent company of Movement Network, has suspended its co-founder, Rushi Manche. This decision has been taken due to the controversy and market-making scam over the MOVE Token.
This decision came just hours after popular crypto exchange Coinbase delisted the MOVE Token from its platform. The centre of this controversy is a suspicious market maker who, according to allegations, dumped MOVE Tokens worth about $38 million in the market during the Movement Crypto Airdrop in December.
Movement Labs confirmed this in a post on X. They said, “This decision has been made in light of current events and an ongoing third-party review by Groom Lake, which is investigating the organization’s governance and recent events involving market makers.”
Rentech’s deal became a major reason for controversy
According to a CoinDesk report, Movement Labs, led by Rushi Manche, had signed a market-making bond with a company called Rentech. The report claimed that Rentech was misrepresented as a subsidiary of Web3Por.
According to this agreement, Rentech was handed over about 5% of the total supply of MOVE Token and Rentech was encouraged to raise the price of the token to $5 billion and then sell it and share the profit. At the same time, this type of activity is known as a “pump and dump scheme” in the crypto market, which is not only illegal but also reduces the confidence of investors.
MOVE Token Price has seen a huge drop since this controversy . The token’s price has dropped by about 22% in the last 24 hours and at the time of writing the news, the MOVE token was trading around $0.1950, which is 86% below its all-time high touched in December.
Warning to Crypto Investors: Time for Transparency and Security
This incident shows how important transparency and proper governance are in crypto projects. The way Movement Labs initially dealt with market makers has caused huge losses to many investors, and this incident makes it clear that before investing in any project, it is very important to research its team background, token economics, and marketing strategy.
The suspension of Movement Labs co-founder Rushi Manche shows that the company is taking this crisis seriously and is taking steps to maintain transparency. Although the Groom Lake investigation is not yet complete, the initial actions indicate that the organization is trying to rebuild trust. It will be interesting to see in the coming days how this case affects the cryptocurrency market and the future of MOVE Token. If you want to know about the crypto market in detail, then you can visit our NFT News, Crypto Exchanges, and Blockchain News sections. You will get detailed information related to new projects like the XRPL EVM Testnet Launch.
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