Move token prices to an all-time low due to market manipulation scandals.
Rentech, the intermediary, encourages price manipulation through controlling mobile tokens.
Binance bans Rentech’s accounts, and Movement Lab has launched a buyback plan to restore investor trust.
A massive scandal has shaken up the world of crypto. It’s all about the tokens of movement. What was supposed to have been successful in launching Move ended in disaster, and prices fell to an all-time low of $0.219. Behind this sudden collapse is financial transactions that were supposed to boost the success of the token, but instead led to market manipulation and suspicious tactics.
Who is behind this code mess? Let’s break down the details.
Deceptive trading leads to price collapse
Move Move Foundation is under investigation for signing a transaction that gave a single entity disproportionate control over the token market, following the launch of Move. The deal was awarded to Web3port, a Chinese market maker with ties to global Liberty Financial and key leverage, belonging to Donald Trump.
This led to 66 million mobile tokens on sale just one day after their debut in December. The massive token dumps caused a sharp drop in prices and caused insider trading claims.
RETECH: Intermediaries at the heart of the scandal
An internal message from Movement co-founder Cooper Scanlon revealed he was deceived by working with an intermediary named Rentech. Originally thought to be a subsidiary of Web3port, Rentech turned out to be another entity that facilitated this market manipulation.
With this agreement, Rentech was able to borrow up to 5% of Move’s total supply, providing significant control over the price of the token and raising the red flag on potential price manipulation.
Price manipulation incentives
The market-making agreement contained anomalous clauses, including those encouraged by rentech to artificially drive the price of mobile tokens beyond the value of $5 billion. This setup would have allowed them to profit from a sudden price increase and then sell their tokens.
Industry experts, including Crypto founder Zaki Manian, have accused the structure of calling it “dangerous” and unethical, encouraging price manipulation.
Internal conflicts and investigations
The movement also faces internal tension. Allegations have emerged that co-founder Rushi Manche is involved in driving the deal, with some suggesting conflicts of interest playing a role.
The company is currently working to investigate these claims and hold them responsible for holding them responsible.
Binance stepes in
As a result of the token dump, one of the biggest crypto exchanges, Binance has banned market creation accounts related to Rentech. In response, the Movement Foundation launched a token buyback initiative to stabilize prices and regain investor trust.
Despite negative coverage and fallout from price crashes, Movement Lab has committed to investigating the circumstances surrounding the transaction and ensuring accountability.
