The post Sonic Labs abandons Wintermute, seeks new market maker appeared on BitcoinEthereumNews.com.

Sonic Labs announced the end of its relationship with Wintermute. The platform is searching for a new market maker that can reflect the growth of on-chain activity and DeFi.  Sonic Labs, formerly Fantom, announced the end of its relationship with Wintermute. The platform will seek a new market maker that will go beyond centralized exchanges and reflect Sonic’s record on-chain activity.  The announcement arrived after the price of the native S token slid from $0.61 down to $0.53 on selling pressure. The Sonic Labs team explained that the selling happened after Wintermute was informed that the five-year relationship with the project would end. One of the reasons for Wintermute selling was to cover a liquidity loan from Sonic Labs.  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++, they get involved in our DeFi ecosystem, engage with applications… — assistant.sonic (@SonicAssistant) May 15, 2025 The sales were tracked to the wallets of Wintermute as the market maker divested 3M S, shifting holdings down to 10M tokens. After the sale, Wintermute holds $5.9M of S based on current prices.  The team’s explanation was met with some skepticism, as the exact terms of the token loan were unknown, as well as the need for Wintermute to sell the token and crash the price.  The Sonic community speculated that the partnership was ended on bad terms, leading to the selling pressure. There are also suggestions Wintermute may actually have to re-buy S tokens to return the loan in kind. Wintermute has not given the rationale for depositing the tokens to exchanges. The end of the Wintermute contract is also expected to lead to…

---

Filed under: News - @ May 15, 2025 7:24 pm