Securities Held by Wintermute Decrease, Resulting in a 6% Drop in Sonic's Value
Let 'er Rip!:
Sonic, formerly Fantom, slammed the brakes on its five-year relationship with market maker Wintermute. Just hours prior, Wintermute dumped over $850,000 worth of S tokens, triggering a 6% S d drop.
Wintermute's shady past is no secret, but this latest move might be just business as usual. Sonic maintains there's no foul play, claiming Wintermute sold its token holdings to return a loan.
The Breakup
Sonic's been riding high since launching its native token in January. It hit $1 billion in TVL in a mind-blowing 66 days, and never looked back with a Binance airdrop.
But S took a drastic dive over the last few hours, with Wintermute unloading around 3 million S tokens. Intel Scout, a Sonic ecosystem decoder, was the first to catch onto it. He exposed Wintermute's 24-hour sale spree and implicated other whales who dumped even more.
Sonic's mysterious Head of Strategy weighed in, confirming the split: "CEX support ain't enough anymore," he said, emphasizing the need for a new market maker to roll up its sleeves and get stuck into Sonic's DeFi ecosystem, community, apps, and developer team.
Even though Sonic and Wintermute seem to have parted ways amicably, Wintermute's got a history. In January, it faced accusations of market manipulation, and last month, a token dump tanked ACT by 50%, just a few months after partnering with the project.
However, Sonic's remains tight-lipped about any issues, instead giving a sympathetic reason for the token sale: Wintermute needed to return borrowed funds. Wintermute, as usual, kept mum about the whole deal.
Time for a Change
So, who's stepping in to back S now? Sonic Labs is on the hunt for market makers that can keep up with its rapid growth and support its DeFi ecosystem.
As the crypto game changes, partnerships are becoming tighter and more integrated. Projects demand collaborative partners who can actively engage, not just stand on the sidelines.
But remember, folks: always double-check your facts before making any decisions. Stay woke! 😉
Sources : 1, 3, 4, 5
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- The tumultuous relationship between Sonic and market maker Wintermute took a turn when Sonic, formerly known as Fantom, decided to end their five-year partnership.
- After Wintermute sold over $850,000 worth of S tokens, triggering a 6% drop in S's value, questions about foul play arose, but Sonic maintains that the sale was to return a loan.
- Sonic's native token, S, has been gaining traction in the DeFi and crypto world, reaching a TVL of $1 billion in just 66 days, but it took a drastic dive recently, with Wintermute unloading around 3 million S tokens and other whales dumping even more.
- In the wake of Wintermute's exit, Sonic Labs is looking for new market makers that can keep up with their rapid growth and support their DeFi ecosystem, technology, business, and finance endeavors.
