Movement Labs has officially dismissed its co-founder, Rushi Manche, following a turbulent period marked by internal tensions and mounting controversy.
The announcement, which follows Manche’s suspension on May 2, comes amid efforts by the organization to restructure its leadership and implement a more transparent governance framework.
The decision to part ways with Manche marks a critical turning point for Movement Labs as it attempts to stabilize operations and address concerns from stakeholders.
The company emphasized that new leadership will guide the firm forward, with plans for an overhauled governance system to be revealed soon.
Market Maker Deal Triggers Major Fallout and Price Collapse
The catalyst for Manche’s dismissal stems from a controversial market-making agreement that he allegedly negotiated, leading to both financial and reputational damage.
At the center of the issue is a transaction that distributed 66 million MOVE tokens, approximately 5% of the total supply, to Web3Port.
The entity is believed to have dumped the tokens almost immediately, contributing to a dramatic $38 million in downward pressure on MOVE’s price in December 2024.
The resulting crash led to widespread outrage within the community and prompted harsh scrutiny of Movement Labs’ internal controls, governance practices, and risk management strategies.
Airdrop Delayed Following Sybil Attack and Manipulation Concerns
In a further blow to its credibility, Movement Labs announced a delay of its anticipated MoveDrop airdrop due to signs of a Sybil attack and coordinated market manipulation.
These attempts to exploit token distribution mechanisms exposed critical vulnerabilities in the project’s airdrop infrastructure.
In response, the company is reclaiming compromised tokens and pledging to redirect them toward genuine community-building initiatives.
To prevent future exploitation, Movement Labs is implementing enhanced identity verification protocols and promising broader governance reforms designed to ensure a more secure and equitable token distribution process.
Rebuilding Trust Through Governance Reform and Strategic Reset
Looking ahead, Movement Labs is embarking on a significant reorganization, promising renewed focus on governance, leadership transparency, and long-term project sustainability.
The firing of a co-founder reflects the severity of the internal crisis and the urgency with which the company must act to restore confidence.
While leadership restructuring is a necessary first step, investors and community members will be watching closely for concrete reforms.
To regain momentum, Movement Labs must clearly define the MOVE token’s future utility, stabilize its tokenomics, and deliver on promises of a more decentralized, community-aligned governance model.
MOVE Token Price Slides Amid Market Uncertainty
Amid the turmoil, the price of the MOVE token has taken a significant hit. As of today, MOVE is trading at $0.159, reflecting a 10.13% drop in the past 24 hours and a sharp 35.06% decline over the past week.
The token’s market capitalization now stands at approximately $398.7 million, with a circulating supply of 2.5 billion tokens and a 24-hour trading volume of over $190 million.
The steep price decline reflects waning investor confidence following recent controversies and uncertainty around future project developments.
As Movement Labs works to rebuild its leadership and regain user trust, the coming weeks will be critical in determining whether the project can recover and reposition itself for sustainable growth.
Also Read: Movement Foundation Sees $314M $MOVE Token Applications, Triggers 40% $MOVE Price Rally