Coinbase Drops MOVE Token Following Sell-Off Scandal

The investigation is led by cybersecurity firm Groom Lake, and it centers on a controversial agreement involving Movement Labs, Web3Port, and Rentech, which allegedly dumped over 66 million MOVE tokens. Meanwhile, the DeFi platform Sky, formerly known as Maker, is finalizing its transition by replacing the MKR token with SKY and introducing staking rewards tied to its stablecoin, USDS. The switch includes penalties for delayed upgrades and aims to streamline liquidity across exchanges. While some tokens are being delisted or replaced, others are gaining traction. MGX, an Abu Dhabi-based investment firm, confirmed it will use USD1—a stablecoin linked to Donald Trump’s family—to settle a $2 billion investment in Binance. Coinbase to Suspend MOVE Token Trading Coinbase announced that it will suspend trading of the MOVE token, the native cryptocurrency of the Movement Network, effective May 15. The decision was revealed in a May 1 post on X, with Coinbase explaining that the token no longer meets its listing standards. As part of the delisting process, the MOVE token’s order books have been placed in limit-only mode across all Coinbase platforms, including Simple and Advanced Trade, Coinbase Exchange, and Coinbase Prime. The announcement was made after a sharp 14.5% decline in MOVE’s price in just 24 hours, which deepened concerns surrounding the token’s recent market behavior. The backdrop to this suspension involves an ongoing third-party investigation into a controversial agreement between Movement Labs and Web3Port, a market-making firm that was involved in the initial distribution of the MOVE token. This investigation was launched by the Movement Network Foundation on April 21, and is being led by Groom Lake, an independent cybersecurity and intelligence firm. According to details that were shared by CoinDesk , the deal was brokered by a company named Rentech, which allegedly held a dual role in the agreement — acting both as a subsidiary of Web3Port and an agent for the Movement Foundation. This arrangement granted Rentech control over more than 66 million MOVE tokens. The company then reportedly sold these tokens shortly after the token’s December 2024 launch, which resulted in roughly $38 million in downward pressure on the token’s price. MOVE’s price action over the past month (Source: CoinMarketCap ) The MOVE token has been in a prolonged downtrend since early January of 2025 and is currently trading close to $0.20. For now, Coinbase’s delisting decision made the token’s outlook even more uncertain, and added to the uncertainty facing holders and the Movement Network. SKY Set to Replace MKR in Governance Shift While some tokens are being delisted, others are being replaced. Sky, the decentralized finance (DeFi) lending platform formerly known as Maker, recently proposed a final step in its transition by replacing the Maker (MKR) governance token with the new Sky (SKY) token and enabling staking functionality. The proposal was submitted to the Sky decentralized autonomous organization (DAO) forum on May 1. If approved, the transition will occur between May 15 and May 19. After this date, users would no longer be able to downgrade from SKY back to MKR. Sky co-founder Rune Christensen is very supportive of the proposal, and called it a major milestone. He believes that the ability to revert from SKY back to MKR hindered adoption by centralized exchanges due to concerns about liquidity fragmentation. Removing this option, according to Christensen, will encourage faster exchange support for SKY. To encourage a timely switch, the proposal includes penalties for MKR holders who delay upgrading to SKY. Starting Sept. 18, a 1% penalty will be applied to late upgrades, increasing every three months. Those affected will also receive fewer SKY tokens in the swap. One of the key additions accompanying the transition will be SKY staking, which will allow holders to earn rewards tied to income generated by the protocol’s decentralized stablecoin, USDS. These rewards are expected to go live two to three weeks after the governance contract upgrade, with half of the protocol’s income distributed via staking. Christensen explained that completing the upgrade is essential for Sky to eliminate fixed costs by the end of 2025, and will allow for a larger share of revenue to be used for SKY token buybacks and staking incentives. During the early phase of the token transition, SKY liquidations will be temporarily paused to avoid market manipulation risks. Once liquidity stabilizes, Sky Governance plans to lift the freeze and adjust risk parameters to their intended levels. Sky officially rebranded from Maker in August of last year, but after facing some confusion and criticism, there was internal debate about reverting to the original name. A community poll that was held in November ultimately affirmed the decision to keep the Sky branding. Trump-Linked Stablecoin Used in $2B Binance Deal Meanwhile, other tokens are gaining more and more momentum. Abu Dhabi-based investment firm MGX will settle its $2 billion investment in Binance using a stablecoin tied to the Trump family. This is a huge moment for both the cryptocurrency industry and political-linked digital assets. A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the US dollar, euro, or gold. It combines the fast, borderless nature of crypto with the price stability of traditional fiat currencies. The stablecoin, known as World Liberty Financial USD (USD1), was launched in March of 2025 by World Liberty Financial (WLFI), a crypto platform associated with US President Donald Trump’s family. The use of USD1 in the transaction was confirmed by Eric Trump, executive vice president of the Trump Organization, during a panel at the Token2049 conference in Dubai. Eric Trump speaking at Token 2049 MGX initially announced its landmark investment in Binance on March 12, which made it the first institutional investor in the world’s largest crypto exchange. At the time, Binance declined to reveal which stablecoin was used in the transaction, but the recent disclosure by Eric Trump now confirms USD1 as the settlement currency. This investment was also MGX’s debut in the cryptocurrency sector, and proves the growing institutional interest in blockchain-based financial infrastructure. During his talk, Eric Trump criticized the inefficiencies of traditional banking, and even called the existing financial system “a joke.” He specifically pointed out the outdated operating hours of banks and the slow, costly nature of international transfers using systems like SWIFT . He compared this to the near-instant settlement speeds that are offered by crypto stablecoins like USDT and USDC, which typically complete transactions within minutes on networks like Ethereum. Trump also pointed out that the financial world is undergoing a major transformation, and those who embrace crypto now, rather than years down the line, are likely to lead the future of finance.

Source: Coinpaper