Coinbase Drops MOVE Token After Explosive Scandal

Following recent turbulence in the crypto space, Coinbase, the largest US exchange platform, made the surprising decision to delist the MOVE token, sparking questions within the community.

Written by Gaston Cuny

Translated on May 20, 2025 at 17:05 by Sarah

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Crypto Giant Distances Itself from a Controversial Project

Following the recent turmoil that has shaken the crypto ecosystem, Coinbase, the largest American exchange platform, has made the surprising decision to part ways with the MOVE token, sparking many questions within the community. This move comes after a massive $38 million liquidation, reigniting debates on the transparency and governance of decentralized projects.

Coinbase, which had initially partnered with the MOVE project, has ultimately chosen to completely disengage from it. This abrupt decision follows a series of controversial events that have damaged the reputation of the token, including the liquidation of a significant market maker.

Coinbase application on smartphone — Credits: Ivan Radic (Flickr)

According to the company’s statements, this disengagement aims to protect the user experience and the reliability of the platform, essential pillars of Coinbase’s strategy. Indeed, the scandals associated with the MOVE project could have tarnished the image of the American giant, prompting it to take drastic measures to preserve the trust of its community.

Opacity of the MOVE Project, an Unacceptable Risk for Coinbase

Beyond reputation considerations, it is primarily the opacity surrounding the MOVE project that motivated Coinbase’s decision. The many uncertainties regarding governance, solvency, and market maker practices have raised serious concerns within the platform.

Indeed, the sudden and massive $38 million liquidation has raised serious questions about the financial stability and control mechanisms of the project. These factors ultimately led Coinbase to deem the risk too high to maintain its support for the MOVE token.

This decision by Coinbase highlights the crucial importance of transparency and governance for projects in the crypto ecosystem. Investors, users, and partners now expect major players like Coinbase to exercise increased vigilance before associating with new initiatives.

Beyond the specific case of the MOVE token, this episode underscores the need for decentralized projects to strengthen their control and accountability mechanisms to gain the trust of key industry players. The lessons learned from this incident should serve as the foundation for the emergence of better governance practices in the cryptocurrency space.

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Gaston Cuny

Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.

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