MOVE Coin Tanks 40% in a Week—VC Darling Can’t Outrun Market Skepticism

Despite heavyweight backers and a slick tech pitch, MOVE’s token bled out faster than a DeFi hack. The ’next-gen infrastructure play’ now trades at May 2024 levels—proving once again that even Silicon Valley’s golden touch can’t defy crypto gravity.

What went wrong? Overhyped partnerships met brutal tokenomics. The usual suspects: unlocked supply hitting exchanges, staking rewards dumping pressure, and that classic crypto combo of maximalist hype meets minimal utility.

One hedge fund PM quipped: ’Turns out moving money in circles only works when someone else is left holding the bag.’ Ouch.

Mystery Behind MOVE Coin’s Fall

MOVE Coin, supported by Donald Trump’s World Liberty Financial, came into the spotlight with serious allegations. The distribution of tokens in the background fueled the discussions. Movement Labs allocated a large portion of the MOVE supply to a few advisors before the official launch, and this was kept secret.

When a significant portion of supply is covertly distributed to unknown individuals, one cannot expect the crypto venture to sustain itself. That was the case here, and MOVE Coin investors justifiably made swift sales to withdraw from the project.

According to documents examined by Coindesk, the company promised a single advisor $2 million annually. Shadow advisors, secret token allocations, and the decisions made by a young 23-year-old founder led to the adversity faced by the WLFI-backed token.

Documents reveal that Movement Labs’ advisors Sam Thapaliya and Vinit Parekh received 5% and 2.5% shares of the tokens, respectively. Co-founders Rushi Manche and Cooper Scanlon parted ways after public disputes on social media. All these factors made it difficult for MOVE Coin to survive in the long run.

Distribution of MOVE Coin Supply

The supply was distributed as follows according to the available documents, with shadow advisors kept undisclosed:

• 5% of MOVE supply to Sam Thapaliya for marketing and market-making activities.
• 2.5% of tokens through various agreements to Sam.
• 2.5% of the supply to “Digital Incubation Group” linked to Vinit Parekh.
• A condition to pay Parekh’s company $50,000 annually for every $1 million funds raised by Movement Labs.
• 5% of the supply to Chinese market maker Web3Port.

These allocations were made. Coinbase announced the suspension of MOVE token transactions as of May 15, and following all these developments, expectations regarding the token’s future have been significantly undermined.

The altcoin, which has been in decline for 157 days, eroded 86% and, after hitting a low of $0.15, is now hovering around $0.20.