According to CoinPhoton's report on May 2, Coinbase announced that it will suspend trading of the MOVE token on May 16, coinciding with numerous allegations of market manipulation and governance opacity surrounding Movement Labs.

According to an investigative report released by CoinDesk on April 30, a contract between the Movement Foundation and the intermediary company Rentech has raised questions about market manipulation. The contract allowed Rentech to borrow 5% of the total supply of MOVE and included terms that could foster manipulative behavior. Although the contract was initially rejected due to risks, it was ultimately signed two days before MOVE was launched on Binance.

Subsequently, the market quickly collapsed, with over 66 million MOVE being sold off. Binance then banned the market maker Web3Port associated with Rentech and requested Movement Labs to buy back the dumped tokens.

A severe crisis also erupted within the project, leading to the suspension of co-founder Rushi Manche due to an internal investigation. Other individuals involved in drafting the controversial contract and token distribution structure include informal advisors Sam Thapaliya, Galen Law-Kun, and YK Pek.

Once highly anticipated, the Layer 2 network Movement Labs, built with the Move programming language, is now facing a serious trust crisis. Coinbase's decision to suspend trading of MOVE may indicate that more consequences are brewing.

The MOVE token has dropped 20% in the past 24 hours.