Andre Cronje and two other founders have stepped down from the Sonic Labs board, the company announced, with the S token hovering near all-time lows. Matt Visser takes over as CEO, marking the second leadership change in nine months.
Michael Kong and David Richardson also resigned alongside Cronje. The shake-up comes as S trades roughly 91% below its January 2025 high, reigniting debate over whether the token has found a bottom.
Cronje and Cofounders Pass the Baton to Visser
Sonic Labs described the departures as a smooth transition. According to the team’s statement, Kong, Cronje, and Richardson retain their holdings but will no longer be involved in day-to-day business decisions.
The move wraps up a rocky year at the top. Sonic appointed Mitchell Demeter as CEO last September to attract institutional investment, but he was gone by February, forcing the founding board to take charge of operations.
Cronje, widely recognized as a pioneer of decentralized finance (DeFi), walked away from his projects suddenly in 2022. He has since shifted focus to Flying Tulip, a new exchange he is currently fundraising to develop.
S Token Nears Fresh Lows as Capital Drains Away
Investors have responded harshly. S recently changed hands near $0.029, slipping about 6% in a single day and around 37% over the past month. Year-to-date losses stand close to 91%.
The decline has dragged Sonic’s market capitalization down to roughly $111 million, placing it near the 250th rank. The token now hovers just above its June 6 record low, a far cry from the $1.03 peak it reached in January 2025.
The outflow of capital extends well beyond price. Sonic, which emerged from Fantom’s rebrand, once surpassed $1 billion in total value locked within months of launching.
Since then, TVL has cratered to about $18 million, according to DefiLlama. That represents a staggering drop of approximately 98% from a 2025 high above $1.1 billion.
“Woke up today to read about Andre Cronje resigning from Sonic Labs board. Checked CoinGecko and see that token is down 90% in last 1 year. Market cap $116m. So many projects are struggling so much this bear market. Tough year, but probably we haven’t bottomed yet unfortunately,” commented Bobby Ong, co-founder of CoinGecko.
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Sonic Vows a Fresh Start as Critics Challenge the Timing
Not everyone is buying the narrative, however. Critics contend that stepping away during a downturn undermines confidence.
Sonic maintains that its future does not depend on the token price. The team says it faces no venture capital unlock pressures and funds development through a diversified treasury, providing financial runway regardless of market conditions.
Management also highlights consistent development activity, pointing to 400 pull requests merged this year, two product releases delivered, and a private testnet already running for version 2.2.0.
Visser set a measured tone, steering clear of promises for a rapid recovery.
“I am not here to promise an instant turnaround. I am here to make Sonic 1% better every single day and let that compound. Show up, do the work, prove it in public, repeat,” read an excerpt in the announcement, citing Matt Visser, Sonic CEO.
Can that steady approach help stabilize the S token?
Sonic (S) Drops 40% in a Month as RSI Triggers New Sell Signal
The Sonic price has drifted back toward the record low it established earlier this month. Momentum indicators have turned sharply bearish.
S now trades below all key moving averages, with sellers firmly in command. Buyers have shown little interest in defending current price levels.
Momentum reflects weak demand, with the Relative Strength Index (RSI) at 32.50, just above oversold levels and below its 33.25 signal line.
The chart flags this crossover as a fresh sell signal, since every prior instance of the RSI dipping below the signal line in recent weeks was followed by further price declines.
The reading mirrors the mixed signals from a recent spike in trading volume. A move back above 40 on the RSI would suggest selling pressure is easing.
For now, the S price outlook depends on the $0.028 support floor, as the token remains trapped beneath a descending trendline and the 20-day EMA at $0.033.
A daily close below $0.028 could open the door to a retest of the $0.0277 record low, about 5% lower.
Climbing back above $0.033 would negate the bearish pattern. Longer-term forecast models remain cautious.
The Fantom Opera network shutdown on June 30 may introduce additional volatility as holders complete their migration.
Holding above $0.028 keeps the possibility of a rebound intact, while a break below confirms the downtrend is intact.
The post Andre Cronje Exits Sonic Board as S Token Slides 40% appeared first on BeInCrypto.
