Secret Contracts, Shadow Advisors and Hidden Middlemen
The post Secret Contracts, Shadow Advisors and Hidden Middlemen appeared on BitcoinEthereumNews.com. A financial deal was supposed to help launch the MOVE crypto token.Instead, it led to a token-dumping scandal, a Binance ban, and behind-the-scenes infighting. Contracts obtained by CoinDesk help explain where it all went wrong. Movement, the blockchain project behind the MOVE cryptocurrency, is investigating whether it was deceived into signing a financial agreement that granted a single entity outsized control over the market for its token, according to internal documents reviewed by CoinDesk. The agreement led to 66 million MOVE tokens being sold onto the market the day after the asset’s December 9 exchange debut, triggering a steep price drop and allegations of insider dealing within a crypto project endorsed by World Liberty Financial, the crypto venture backed by Donald Trump. Cooper Scanlon, Movement Labs’ co-founder, told employees in an April 21 Slack message that the company was examining how more than 5% of MOVE tokens earmarked for Web3Port, a market maker, were routed through a middleman named Rentech — “an entity the foundation was led to believe was a subsidiary of Web3Port but apparently is not.” Rentech denies engaging in any misrepresentation. Slack message from Movement co-founder Cooper Scanlon. Rentech is misspelled as “Rentek.” (Obtained by CoinDesk) Movement’s contract with Rentech loaned a single counterparty around half of MOVE’s publicly held supply, according to an internal Movement Foundation memo. This granted the entity an unusually large degree of control over the fledgling token, experts told CoinDesk. More worryingly, in versions of the contracts obtained by CoinDesk, “there are incentives basically to manipulate the price to over $5 billion fully diluted value and then dump on retail for shared profit,” concluded Zaki Manian, a veteran crypto founder who reviewed the documents. “Even participating in a discussion where that’s on paper is insane.” Market makers, hired to provide liquidity for…
The post Secret Contracts, Shadow Advisors and Hidden Middlemen appeared on BitcoinEthereumNews.com.
A financial deal was supposed to help launch the MOVE crypto token.Instead, it led to a token-dumping scandal, a Binance ban, and behind-the-scenes infighting. Contracts obtained by CoinDesk help explain where it all went wrong. Movement, the blockchain project behind the MOVE cryptocurrency, is investigating whether it was deceived into signing a financial agreement that granted a single entity outsized control over the market for its token, according to internal documents reviewed by CoinDesk. The agreement led to 66 million MOVE tokens being sold onto the market the day after the asset’s December 9 exchange debut, triggering a steep price drop and allegations of insider dealing within a crypto project endorsed by World Liberty Financial, the crypto venture backed by Donald Trump. Cooper Scanlon, Movement Labs’ co-founder, told employees in an April 21 Slack message that the company was examining how more than 5% of MOVE tokens earmarked for Web3Port, a market maker, were routed through a middleman named Rentech — “an entity the foundation was led to believe was a subsidiary of Web3Port but apparently is not.” Rentech denies engaging in any misrepresentation. Slack message from Movement co-founder Cooper Scanlon. Rentech is misspelled as “Rentek.” (Obtained by CoinDesk) Movement’s contract with Rentech loaned a single counterparty around half of MOVE’s publicly held supply, according to an internal Movement Foundation memo. This granted the entity an unusually large degree of control over the fledgling token, experts told CoinDesk. More worryingly, in versions of the contracts obtained by CoinDesk, “there are incentives basically to manipulate the price to over $5 billion fully diluted value and then dump on retail for shared profit,” concluded Zaki Manian, a veteran crypto founder who reviewed the documents. “Even participating in a discussion where that’s on paper is insane.” Market makers, hired to provide liquidity for…
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