$S Less than two weeks, from $0.61 -> $0.37 📉 a drop of nearly 40%

Abnormal price fluctuations, what is the reason behind it @SonicLabs

The main reason might be that @wintermute_t has exited as a market maker for $S.

This was mentioned officially before, because the contract has expired, Sonic needs to switch to a new market maker.

🔗 https://t.co/uQXOBxpvrQ

Based on on-chain data, WM held 14M $S at its peak on May 1st.

In the past month, they sold nearly 50%, leaving only 7M currently.

Current trading records show that WM has transferred large amounts of $S to different CEX trading platforms Bybit \ OKX \ Gate \ Crypto \ Kraken. As $S shows no signs of rebound, it is highly likely that they are still in the process of selling.

However, there is no need to worry too much, as $S is in a fully circulating state, and @AndreCronjeTech mentioned that there is a new market maker taking over.

(Interestingly, what is the specific reason for this costless dumping to exchange chips?)

Because Sonic actually has quite a few favorable developments recently.

They secured large financing, and there is deep cooperation with institutions, so there is no need to make the K-line look so bad.

@wintermute_t currently has little capital left, with only 4M S assets remaining.

Since the TVL is still very high, it has not dropped like the S price -40%, but only accompanied by panic selling, experiencing a pullback of around -10% like the overall market.

The current S may be in a state of overselling.