Sonic Token Price Dropped 10% on May 15 After Wintermute Sold About $857,000 Worth of S Tokens

The transaction followed the end of the five-year Wintermute Sonic partnership. Sonic disclosed the partnership termination shortly after the large transfer.

Wintermute sold about $857,000 worth of Sonic (S) tokens on May 15, causing the token price to drop 10%. The transaction followed the end of the five-year Wintermute Sonic partnership and was linked by Intel Scout to a large transfer of nearly 3 million S tokens within 24 hours.

The Sonic token drop began immediately, putting the market in a spin and leading to visible losses in market value.

According to a statement by Sonic, the transaction was not unusual and the tokens were sold to repay a loan. The statement also said that the move in the Sonic token was not due to any foul play.

However, the sell-off did affect price sentiment and market activity.

The partnership between the two was focused on liquidity support on centralized exchanges, but Sonic is now looking for a new market maker to provide broader coverage for its DeFi applications and developers.

Announcing the shift internally, Sonic’s Head of Strategy said that CEX-only support is simply no longer enough.

The team is now engaging with candidates that can offer optimal integration within the Sonic ecosystem, aiming for market-making capabilities that extend beyond traditional exchange support.

The initiative is focused on facilitating optimal liquidity conditions for both the project’s core modules and the broader developer community.

The report by Intel Scout also mentioned other whales selling S tokens during the same 24-hour window, which contributed to the price pressure. However, Sonic did not disclose the identity or actions of the other sellers.

The S token moved lower throughout the day, coinciding with the reported timeline of the Wintermute sale. In response to the token movement, trading volume surged, indicating lively market activity.

While acknowledging the activity, Sonic highlighted Wintermute’s repayment of a loan and did not provide additional details about the other reported sellers.

This wasn't the first time that a token dump by the market maker has come into focus. In January, transactions linked to Binance linked to the firm for around $20 million drew attention online, although no regulatory action followed.

In April, the firm sold tokens from the ACT project, which caused the token to drop 50%, sparking backlash from the community. At the time, the firm did not issue a statement.

The sale of Sonic tokens on May 15 did not trigger similar public reactions, with the firm saying that the S token dump was to return a loan and did not criticize Wintermute, which has not yet responded.

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