Sonic Shifts Market Makers After Wintermute’s Token Sale and Price Impact

• Sonic ends its 5-year partnership with Wintermute, revealing a token sale to return loaned funds after the market maker’s $857,000 dump.

• Wintermute’s token dump led to a 5.8% drop in Sonic’s price, but no foul play was suggested by Sonic’s team.

• Sonic seeks a new market maker that can actively engage with its DeFi ecosystem, signaling a shift in strategy.

This article explores Sonic’s recent split from Wintermute amid a significant token dump, highlighting the implications for its DeFi strategy and market performance.

Wintermute and Sonic Part Ways

Sonic (formerly known as Fantom) has experienced remarkable growth since the launch of its native token in January, achieving $1 billion in Total Value Locked (TVL) within just 66 days and maintaining positive momentum through a strategic airdrop on Binance.

However, a recent turn of events saw Sonic’s price drop sharply as Wintermute offloaded approximately $857,000 worth of S tokens, contributing to a price decline of nearly 6%.

Sonice (S) Price Chart. Source: TradingView

Intel Scout, an analyst within the Sonic ecosystem, highlighted that the recent price movements were closely linked to the substantial token drawdown by Wintermute, reporting that the market maker liquidated around 3 million S tokens in a 24-hour period, with additional individual token holders also selling off their holdings.

In response to these developments, Sonic’s anonymous Head of Strategy communicated that the two companies had officially ended their partnership:

“24 hours ago, we informed @wintermute_t that we will not be renewing our MM contract. We have been using WM exclusively for 5 years of service. We have engaged with other MM firms who are willing to provide MM++, actively involving themselves in our DeFi ecosystem and collaborative applications…”

— assistant.sonic (@SonicAssistant) May 15, 2025

Sonic’s Head of Strategy further elaborated that discussions are ongoing with various market makers to find a replacement for Wintermute. The team’s current sentiment underscores that merely having support from centralized exchanges (CEX) is “no longer enough.” The successor must engage comprehensively with Sonic’s evolving DeFi landscape, including its community, applications, and developer engagement.

Controversies and Future Directions

While Sonic’s split from Wintermute appears to be amicable, it’s worth noting that the market maker has a history of controversies. In January, Wintermute was accused of market manipulation linked to transactions exceeding $20 million with Binance, raising concerns about market integrity. Furthermore, last month, a similar token dump significantly affected the ACT token, causing a 50% plunge in its market value.

Despite these past issues, Sonic has handled its situation judiciously. Unlike previous instances where community backlash was intense, Sonic has defended Wintermute’s actions, attributing their token sales to the necessity of returning loaned funds. As the dust settles, Wintermute has not publicly commented on its narrative.

Conclusion

The separation between Sonic and Wintermute marks a pivotal moment in Sonic’s trajectory as it seeks a new partner better aligned with its DeFi aspirations. As Sonic navigates this transitional phase, the focus will remain on securing a market maker that fosters active engagement within its developing ecosystem. The path forward will require vigilance and adaptability to enhance its market presence and investor confidence.