The Movement Token (MOVE) has plummeted to an all-time low following a series of controversies, including allegations of market manipulation, delisting from major exchanges, and the suspension of a key executive. The token, which was trading at $1.45 in December 2024, has fallen below $0.1720 after Coinbase announced its suspension.

The crisis began with a dubious market-making deal that triggered a $38 million sell-off, drawing regulatory attention and shaking investor confidence. As Binance moved to freeze suspicious funds and Movement Labs initiated a buyback program, the project is now struggling to rebuild trust.

Controversy Surrounding the MOVE Token

Movement Labs has struck a market-making deal with Rentech, a company that has remained quiet amid the cryptocurrency backdrop. This deal granted 66 million MOVE tokens - about 5% of the total supply - to Rentech. Remarkably, on December 10, 2024, just one day after the highly anticipated MOVE launch, these tokens were sold off on the open market consecutively. The sell-off, totaling about $38 million, triggered an immediate price collapse and raised serious doubts.

In March, Binance banned Web3Port, a company linked to Rentech, and froze all funds generated from the large token sale. Coinbase has now followed suit, suspending MOVE's trading activities while citing that the token has not met its listing requirements. This chain of events has sparked outrage within the cryptocurrency community and brought significant negative attention to Movement Labs.

Internal documents reveal that the deal with Rentech was structured in a way that encouraged the inflation of MOVE's price to a market capitalization of $5 billion before selling the tokens. This revelation raises the possibility of self-dealing, as Rentech is allegedly representing both sides of the deal - acting as an agent for Web3Port and a participant for the Movement Foundation. The management failures have drawn sharp criticism from all sides.

MOVE Token Drops to Record Low

The impact on MOVE's price has been severe. From a peak of $1.45 in December 2024, MOVE has now plummeted nearly 88% to its current value of $0.172. In the past 24 hours alone, the token has dropped an additional 5%.

In the past month, MOVE has decreased by over 54%, while the company's market capitalization has also faced a significant drop of around 52% during the same period.

The relative strength index (RSI) is hovering around 30, near oversold conditions, but there are no clear signs of recovery. The Bollinger Bands indicate that the token's price is sticking to the lower range, suggesting high volatility and the potential for further declines. There are concerns about another significant drop to $0.12 if the current support levels are not maintained.

Despite a few hopes for recovery, sentiment across forums remains largely pessimistic, reflecting deep concerns about the future viability of the token.

Coinbase Exits and Co-Founder Suspended

The delisting of Coinbase is the final blow in a story already rife with controversy. This exchange's decision marks a significant moment, demonstrating its commitment to stricter listing standards amid increasing regulatory pressure. The suspension of MOVE follows Binance's actions to freeze Rentech's funds and sever ties with the related market maker.

Amid increasing pressure, Movement Labs has suspended its co-founder, Rushi Manche. In an official statement posted on X, the company stated:

This decision is based on ongoing events and the third-party evaluation process that is still being conducted by Groom Lake regarding organizational governance and recent incidents involving the market maker.

The fund clarified that they believe Web3Port is the company providing liquidity for the MOVE launch. However, CoinDesk reports suggest that Rentech not only represents Web3Port but also seems to act on behalf of the Fund. According to insiders, Manche has been involved with both entities despite them being purportedly independent. Legal advisors later described Rentech's agreement as 'possibly the worst deal' they have ever reviewed.

Can MOVE Recover After This Crisis?

Analysts are skeptical about any short-term recovery, especially considering the extent of the token's depreciation and the cloud of controversy still surrounding Movement Labs.

Technical indicators show that the token is oversold, potentially signaling a short-term recovery, but the overall market sentiment remains pessimistic.

However, some believe that if the team makes the right decisions, the token could recover, citing the case of Pengu Token after a 100% drop.