Movement Token Falls 14% After Coinbase Halts Trading

Movement Token Falls 14% as Coinbase Freezes Trading Amid Investigation

Movement Token (MOVE) saw a significant 14% drop in its value after Coinbase announced a suspension of trading on the token, following an internal investigation into potential market manipulation.

The suspension, which is set to take effect in mid-May, came after CoinDesk’s investigation revealed suspicious market-making activities surrounding MOVE. The suspension is a direct response to concerns about artificially inflated trading volumes and possible manipulation tied to large market-making entities.

Following the news, MOVE’s price sharply declined, diverging from broader market trends where many cryptocurrencies saw modest gains. Coinbase has switched to “limit-only” trading for the token, preventing any further trades at market prices.

In a statement, Movement Labs, the company behind MOVE, confirmed they are working with regulatory authorities to investigate the situation, noting that the market-making firm in question might have played a role in manipulating the token’s price by offloading a significant portion of its holdings at inflated prices.

The token’s drop came despite broader market improvements, signaling the strong impact of regulatory scrutiny on cryptocurrency assets.