Sonic Labs Ends Partnership with Wintermute, Seeks New Market Maker Amid Token Volatility

Sonic Labs, the blockchain platform formerly known as Fantom, has terminated its five-year market-making relationship with Wintermute. The decision follows a sharp decline in the value of its native S token, which dropped from $0.61 to $0.53 amid selling pressure attributed to Wintermute’s exit.

The platform is now actively seeking a replacement market Maker capable of supporting its growing on-chain activity and DeFi ecosystem. Sonic Labs emphasized the need for a partner that can operate beyond centralized exchanges, reflecting its expanding footprint in decentralized finance.

Market observers note the selling pressure coincided with Wintermute’s liquidation of positions to cover a liquidity loan from Sonic Labs. The transition comes during a period of heightened volatility for mid-cap blockchain tokens across both centralized and decentralized trading venues.