Coinbase will suspend trading of Movement’s MOVE token, citing “recent reviews,” following a CoinDesk investigation into market-making deals that experts said incentivized price manipulation.
The token fell more than 13% on the trading suspension news, while the broader market gauge CoinDesk 20 Index rose 4.4%.
Movement Labs is currently investigating how a market maker may have gained access to a significant number of its tokens, which were then dumped on retail investors, causing its price to tank. The market maker, Web3Port, appears in contracts previously reported by CoinDesk.
Coinbase did not share many details about the trading suspension, just announcing that it would do so on May 15 by 2:00 p.m. Pacific Time (21:00 UTC).
Coinbase has already switched its order books to “limit-only mode” for MOVE tokens, meaning trades will only be executed at certain prices, rather than a token’s spot price.
Read more: Inside Movement’s Token-Dump Scandal: Secret Contracts, Shadow Advisers and Hidden Middlemen
