A significant number of altcoins survive only a single cycle, with some vanishing in an even shorter time span. Despite being a newly launched project and receiving support from well-known figures, MOVE Coin experienced a swift demise. The price consistently dropped, and there are contentious reasons for the losses encountered.
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.
