Movement Labs and the Movement Network Foundation have initiated an official internal investigation into potential market manipulation involving their own token, MOVE. Allegations of misconduct have surfaced, causing doubts about the project and impacting investor confidence.
The investigation is currently ongoing with the assistance of an external review firm, prompted by Binance's decision to prohibit an unspecified market maker linked to MOVE. The incident, initially reported by BeInCrypto, revealed that the market maker had sold off 66 million MOVE tokens valued at around $38 million shortly after the token was listed. This led to a significant drop in MOVE's price to below $0.30.
Movement Labs communicated via Slack to their staff about the ongoing internal investigation in response to recent events. They also disclosed that a third-party audit has been commissioned by the Movement Network Foundation to investigate the matter further. The investigation aims for transparency and accountability, without speculating on potential outcomes or penalties.
Simultaneously, Movement co-founder Rushi Manche has taken a temporary leave of absence, despite contradicting reports suggesting otherwise. Co-founder Cooper Scanlon ensures normal operational activities are maintained amidst the uncertainty surrounding MOVE's price depreciation and diminishing trust within the community.
The investigation may assist in reinstating confidence in Movement Labs; however, concerns persist regarding internal controls, vetting of liquidity partners, and the future trajectory of the MOVE ecosystem. The probe also hinted at a possible connection between the market maker and Web3Port, adding to the growing skepticism surrounding market manipulation in the cryptocurrency industry and revealing potential conflicts of interest.
Binance's recent crackdown on market makers involved with other tokens like GPS and SHELL further highlights the pervasive issue of malpractice and lack of oversight in the crypto market, potentially harming retail investors.