Movement Labs suspends co-founder following MOVE market turmoil
The post Movement Labs suspends co-founder following MOVE market turmoil appeared on BitcoinEthereumNews.com.
Movement Labs confirmed the suspension of its co-founder, Rushi Manche, following controversies over a market maker deal that he brokered. Movement announced the suspension of Manche in a May 2 X post, explaining that the “decision was made in light of ongoing events.” The decision follows Coinbase’s recent decision to suspend the Movement Network (MOVE) trading, citing the token’s failure to meet its listing standards. Source: Movement The suspension came after a recently announced third-party review requested by the Movement Network Foundation into an agreement orchestrated by Manche with Rentech — the latter helped broker an agreement with market maker Web3Port. Private intelligence firm Groom Lake is conducting the investigation. This was followed by Web3Port reportedly selling the 66 million MOVE that it gained through the deal — about 5% of the total supply. This led to $38 million in downward price pressure in December 2024. Groom Lake refused to comment on the investigation. Related: Citadel Securities eyes market-making role for crypto exchanges: Report Market makers are a controversial player in crypto According to a recent analysis, the right market maker can be a launchpad for a cryptocurrency project, opening the door to major exchanges and providing valuable liquidity to ensure a token is tradeable. On the other hand, when the wrong incentives are set, market makers can kill a project as it is taking its first steps in the market. A summer 2024 report suggests that up to 78% of new token listings since April 2024 have been poorly conducted, with some suggesting that market makers are involved. Related: How to choose a market maker for your Web3 project Lawsuits claim market maker manipulation Creditors of bankrupt cryptocurrency lending platform Celsius Network have alleged that leading crypto market maker Wintermute was involved in the wash trading of the Celsius…
Filed under: News - @ May 3, 2025 2:28 am