Sonic Token Slumps After Major Wallet Dumps
Sonic Token Price Plunges Amidst Major Sell-Offs
The price of Sonic's native token, S, has experienced a significant drop following the termination of its five-year partnership with market-making firm Wintermute on May 15th. This unexpected split has triggered a wave of large-scale token dumps, sending the price sharply lower.
Massive Token Offloads Spark Market Concerns
According to blockchain analytics firm Intel Scout, Wintermute sold 1.5 million S tokens within 24 hours of the announcement, adding to an earlier sale of approximately $857,000 worth of tokens. While Intel Scout noted this activity was consistent with Sonic's decision not to renew the market-making agreement, the timing and scale raised concerns.
Adding to the downward pressure, a wallet linked to digital asset brokerage firm FalconX moved 2.3 million of its recently acquired 3 million S tokens to Binance within the same 24-hour period. Similar activity from other significant S token holders has fueled speculation of coordinated selling, liquidity reshuffling, or even potential market manipulation.
Intel Scout highlighted this uncertainty, questioning whether these actions represented a coordinated exit strategy, routine exchange activity, or something more concerning. The firm specifically questioned, "[Is this a] Coordinated exit? Liquidity reshuffle? Regular exchange routing? Price Manipulation?"
While some suggested a 'sell-high, buy-low' strategy by FalconX, Intel Scout refuted this, pointing out that the recent sales were made at a loss.
The combined effect of these large sell-offs has resulted in a more than 8% drop in the S token price in the past day, trading around $0.50. Over the past week, the token has lost more than 15% of its value.
Sonic Seeks New Partnerships
Sonic's Head of Strategy confirmed the platform is actively pursuing new partnerships. The company emphasized its shift towards decentralized finance (DeFi) integrations and stated that future market makers must align with this vision.
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