Movement Labs suspends co-founder, leading to a 22% reduction in MOVE's price.
The Whirlwind at Movement Labs Deepens: MOVE Token Holders Suffer Amid Market Maker Scandal
The storm brewing at Movement Labs intensifies, resulting in significant losses for MOVE token holders. This natural progression follows the news of Coinbase's intention to delist the MOVE token.
The continued drama surrounding market makers has created quite a ruckus within the Movement Labs ecosystem, stretching back over a month.
The Exodus of Rushi Manche from Movement Labs
In the wake of Coinbase's decision to delist the MOVE token, Movement Labs has opted to shuffle things up by suspending Rushi Manche, one of its co-founders, paving the way for further probes into the market maker arena.
In a statement, Movement Labs declared, "With ongoing events underway and the third-party review by Groom Lake still being conducted regarding organizational governance and recent market maker incidents, we confirm that Rushi Manche has been suspended from Movement Labs."
The fiasco centers around Web3Port, a market maker suspected of recent anointing some 66 million MOVE tokens, leading to a breathtaking 20% crash in the MOVE token's price.
The drama continued when Binance handed out a penalty to a market maker for the Movement project over trading rule violations, freezing their ill-gotten gains.
Recently, Movement Labs set out to unearth potential market maker mischief concerning the MOVE token through a third-party investigation. Remarkably, this investigation commenced during Manche's temporary leave of absence, although he had subsequently disputed reports of his departure from the project.
"I am still very much with Movement. I missed the company offsite because I was in Asia for Web3Festival," Manche stated on Reddit.
Manche also addressed speculation swirling around his status on Slack, assuring followers that he remains active and attends weekly ecosystem calls. It seems his Slack profile, initially marked inactive, was reactivated not long ago.
This latest development regarding Manche's suspension indicates a more profound problem, likely involving explosive findings from the third-party investigation.
Questions abound concerning the vetting of liquidity partners and, indirectly, the future of the Movement ecosystem. These concerns also cast doubts on the internal controls of Movement Labs.
"And what about Sam Thapaliya?" Mike Dudas of The Block chimed in.
Thapaliya, the founder of Zebec Protocol, has known Movement Labs co-founders Rushi Manche and Cooper Scanlon since college. He provided Movement Labs with advice, particularly for the debut of their MOVE token, including helping curate the airdrop whitelist.
His role was brought under the microscope following a sordid market-making agreement with Rentech that led to a $38 million token sell-off scandal in December 2024. There are whispers that Thapaliya was a party to crucial emails regarding the Rentech deal.
There is also speculation that his influence as an "unofficial third co-founder" may have played a role in last-minute decisions. However, Thapaliya insists he has no formal position, equity, tokens, or decision-making power in Movement Labs or the Movement Foundation.[Enrichment: Zebec Protocol's founder, Sam Thapaliya, might have had deeper involvement in the market-making agreement than initially disclosed, but there is no definitive evidence suggesting a direct link to the market manipulation.]
A Promise of Clarity from Rushi Manche
Although he has yet to address the recent development surrounding his suspension, Manche has promised to shed light on the situation.
"The rumors are running rampant, and there's lots of internal drama. I'm all set to start clearing things up, tell the real story, and clear my name, beginning with this article," he stated in a detailed post.
In this revealing post, Manche alleged that "opportunistic administrators" acting in the shadows as unofficial decision-makers within the foundation may have misled the team.
"These very individuals, who orchestrate back-room deals, manage financial treasuries, hire personnel, and 'negotiate deals' behind closed doors while allowing others to bear the blame, must be held accountable," he added.
Urging founders to collaborate with reputable firms that do not run their agendas, Manche articulated that the Movement Network had strayed far from its original vision.
It remains unclear whether this exposé led to his suspension, as Manche didn't immediately respond to BeInCrypto's request for comment. Following his remarks, the MOVE airdrop (Movedrop), initially scheduled for spring, was postponed.
"Another Movedrop delay, what a mess! The audacity of announcing the expected date only to push it back, showcases a lack of professionalism and disrespect for the community. Move is nothing short of a disappointment," a user lamented.
With the Movement Network's credibility and reputation hanging by a thread, the MOVE token plunges by nearly 22% in the last 24 hours. As of this writing, it has deepened the post-Coinbase delisting loss to sink to $0.20.
To mitigate risks, always ensure to verify facts independently and consult with a financial expert before making decisions based on this information. Learn more about Uphold, a platform offering early access to new tokens, one-step trading, multi-asset support, and urging responsible crypto trading.
Disclaimer:Adhere to the Trust Project guidelines by ensuring this news article provides accurate, timely information. Readers are cautioned to verify facts independently and consult with a financial expert before making decisions based on this content. Please familiarize yourself with our Terms and Conditions, Privacy Policy, and disclaimers for a better understanding of our commitment to transparency and accountability. [Enrichment: There is an ongoing investigation into market maker misconduct involving Movement Labs and the MOVE token.]
- The suspension of Rushi Manche from Movement Labs signifies a new phase in the ongoing investigation into market maker misconduct, following Coinbase's decision to delist the MOVE token.
- Movement Labs has initiated a third-party investigation to uncover potential market maker mischief concerning the MOVE token, a move that came during Manche's temporary leave of absence.
- Binance has penalized a market maker for violating trading rules in the Movement project, attempting to regulate the chaos that has engulfed the ecosystem for over a month.
- The crypto industry is abuzz with speculation and concerns about the vetting of liquidity partners, internal controls, and the future of the Movement ecosystem.
- Rushi Manche, in a detailed post, has promised to clear up the situation, alleging that certain individuals may have misled the team and operated in the shadows as unofficial decision-makers.
- Sam Thapaliya, an influential figure in the Movement Labs ecosystem, is under scrutiny due to his role in a market-making agreement with Rentech, leading to a $38 million token sell-off scandal.
- In the whirlwind of allegations and suspensions, the MOVE airdrop has been delayed, causing dismay among the community.
- The MOVE token, deeply affected by the series of events, has plunged by nearly 22% in the last 24 hours, further exacerbating the post-Coinbase delisting loss.
- As the industry grapples with this scenario, it highlights the importance of transparency, professionalism, and responsible finance in the rapidly evolving world of Web3 and crypto technology.
