Movement (MOVE) is Trending But Its Price is Dropping — Why?

The price of Movement (MOVE) is under pressure following a major leadership shake-up at Movement Labs. On Wednesday, the company announced it had terminated Rushi Manche, its co-founder, amid controversy over an undisclosed market-making deal.

“Movement Labs has terminated Rushi Manche. Movement will continue under different leadership,” the company stated on X.

Why is MOVE Dropping?

Manche’s termination followed a third-party review commissioned by the Movement Network Foundation. The inquiry focused on a deal he arranged with Rentech, which later involved market maker Web3Port.

As part of the deal, Web3Port received 66 million MOVE tokens, roughly 5% of the total supply. Allegedly, the firm dumped these tokens on the market, causing a sharp drop in MOVE’s value. This triggered further criticism, with many pointing to the dumping as a direct cause of the price decline.

Following the backlash, MOVE’s price has seen a steep decline, falling over 36% in the past seven days. In the last 24 hours alone, it dropped more than 15% to approximately $0.155. Trading volume also saw a significant decrease, falling 42.10% to $145 million, indicating a sharp reduction in market activity.

Despite the decline, Gate.io remains the top venue for MOVE trading, with the MOVE/USDT pair still accounting for nearly $19 million in 24-hour volume. OKX also continues to be a popular exchange for the token, seeing consistent trading despite the price drop.

Exchange Response and Community Reaction

The controversial market deal has sparked swift reactions from major centralized exchanges. Binance has blacklisted the market maker involved, while Coinbase is preparing to suspend MOVE token trading entirely by May 15.

Beyond exchanges, the broader crypto community has raised concerns over the project’s transparency and governance. In response to mounting criticism, Movement Labs suspended Manche on May 2. The company announced his termination on Wednesday, citing findings from an internal investigation, which is still underway.

Groom Lake, a private intelligence firm led by Fernando Reyes Jr., is overseeing the probe. Reyes has made it clear that decisive action will be taken against those exploiting the system. He has warned that significant consequences await individuals involved in fraudulent activities within the industry.

New Company Formed After Fallout

Alongside Manche’s dismissal, Movement Labs announced a complete rebranding and organizational overhaul. The team introduced Move Industries, a new entity formed to establish a clear separation from past actions.

Introducing Move Industries: The Future of the Movement https://t.co/CParJ2Bmnm

— Movement (@movementlabsxyz) May 7, 2025

As part of the overhaul, Torab Torabi, who joined the original company in September 2023 as Director of Business Development, has been named CEO of Move Industries. Marketing veteran Will Gaines has been appointed president and CMO.

The new leadership is tasked with steering the company in a new direction and restoring trust. Their appointment marks a pivotal step in redefining the company’s values and long-term vision.

“In light of recent news, we needed a clean break. Movement started with the community and our builders. We’re returning to our roots,” the company stated.

Move Industries has pledged more transparency, promising regular town halls and tighter internal controls. The new company aims to focus on technology and community, distancing itself from the controversies that have surrounded Movement Labs recently.

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