Sonic's native token, S, is experiencing downward pressure after ending its five-year collaboration with market-making firm Wintermute. The separation, revealed on May 15, led to significant token selling, causing a drop in the token's price.

There has been a large sell-off of Sonic tokens after Wintermute sold 1.5 million S tokens following the announcement. This move was expected as Sonic decided not to renew its exclusive market-making agreement with Wintermute. Sonic is now seeking new partners that align with its vision of transitioning into decentralized finance (DeFi).

An interesting development occurred when wallets holding substantial amounts of S tokens were also involved in selling off tokens. FalconX, a digital asset brokerage firm, transferred a significant portion of its acquired S tokens to Binance within the same timeframe as Wintermute’s sell-off, sparking community speculation on coordinated exits, liquidity adjustments, or potential price manipulation.

While there were theories about FalconX implementing a sell-high, buy-low strategy, it seems unlikely as the recent transactions resulted in losses rather than profits. As a consequence of these large sales, the S token's price has fallen by over 8% in the last day, trading around $0.50. The token has seen a more than 15% decrease in value over the past week in response to these rapid sell-offs.