Sonic Ends 5-Year Partnership with Market Maker Wintermute
Sonic publicly revealed that it ended its five-year partnership with Wintermute. A couple of hours prior, the market maker dumped over $850,000 in S tokens, inflicting a 6% worth drop.
Wintermute was concerned in a controversial token dump final month, however at the moment’s occasions could also be a part of a standard enterprise interplay. Sonic claimed no foul play, stating that the market maker offered token holdings to return loaned cash.
Wintermute and Sonic Part Ways
Sonic (previously Fantom) has been on a formidable run since launching its native token in January. It hit $1 billion in TVL in solely 66 days, and continued its ahead momentum with a Binance airdrop.
However, Sonic’s worth fell dramatically over the previous few hours, because the market maker Wintermute started offloading round $857,000 in S tokens.
Intel Scout, a Sonic ecosystem decoder, was the primary to attach S’s worth motion with Wintermute’s token dumping. He claimed that the market maker offered round 3 million S tokens in 24 hours, and a number of other different whales disposed of much more.
Sonic’s nameless Head of Strategy responded to those claims, revealing that the businesses had cut up methods:
Sonic’s Head of Strategy went on to state that the corporate was in talks with a number of market makers to exchange Wintermute.
Specifically, they claimed that CEX solely assist is “simply no longer enough,” and that this successor must proactively interact with Sonic’s DeFi ecosystem, group, apps, and developer staff.
Even if Sonic and Wintermute had an amicable breakup, this isn’t the market maker’s first controversy. In January, the agency confronted accusations of market manipulation after $20 million in transactions with Binance.
Last month, Wintermute’s token dump tanked ACT by 50%, just a few months after it partnered with the venture. This additionally led to group outrage.
Nonetheless, at the moment’s actions haven’t induced the same scandal but. If Sonic was dissatisfied with Wintermute’s actions, the corporate might’ve addressed this, but it surely didn’t.
It even gave a sympathetic cause for the token gross sales, explaining that Wintermute wanted to return loaned funds. Wintermute, for its half, hasn’t mentioned something concerning the episode.
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