Movement

Movement receives a C risk grade (44/100) from Hindenrank, where lower scores indicate lower risk. Elevated risk — market maker scandal, co-founder suspension, Coinbase delisting, and organizational restructuring create serious governance concerns on top of a centralized L2 with a novel unproven execution layer. Movement is a Move language-based Ethereum Layer 2 (now pivoting toward L1) that launched its mainnet in December 2024 with the MEVM hybrid execution environment. The project has approximately $50M in TVL and raised $141M in funding. Its C- grade is driven primarily by a serious governance crisis: a market maker scandal in 2025 resulted in co-founder Rushi Manche's suspension, Coinbase delisting the MOVE token, a company rebrand to Move Industries, and an 80%+ token price decline from all-time highs. The centralized sequencer with no forced-inclusion mechanism, novel MEVM execution layer with limited production history, and ongoing organizational instability compound the risk profile.

The key risks identified for Movement are: (1) In 2025, a market maker scandal revealed that an obscure middleman was granted control of 66 million MOVE tokens through a deal that experts said incentivized pump-and-dump behavior, resulting in a $38M selloff. Co-founder Rushi Manche was suspended, and Coinbase delisted the MOVE token citing failure to meet listing standards. (2) The centralized sequencer has no forced-inclusion mechanism. If the operator goes offline, users cannot exit the system or process transactions through any alternative path. Given the organizational instability, this liveness dependency is particularly concerning. (3) Movement operates a novel MEVM (Move + EVM) hybrid execution environment with limited production history since its December 2024 mainnet launch. Novel execution layers have historically been sources of critical vulnerabilities due to untested edge cases. (4) Monthly token unlocks of approximately 170 million MOVE (5-6% of circulating supply) create persistent sell pressure. With 40% of tokens allocated to team and investors, insider selling could continue depressing token value for years.

Movement scores 44/100 across eight risk dimensions: Mechanism Novelty: 3/15, Interaction Severity: 8/20, Oracle Surface: 0/10, Documentation Gaps: 4/10, Track Record: 10/15, Scale Exposure: 5/10, Regulatory Risk: 8/10, Vitality Risk: 6/10. The highest risk area is Regulatory Risk at 8/10.

Among 37 rated L2 protocols on Hindenrank, Movement ranks #34 by safety (lowest risk score = safest). Its 44/100 risk score and C grade place it among the riskier L2 protocols.

Movement scores 10/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.