Kraken Lists Sonic, Halts FTM Trading, USDC Support Unconfirmed

Kraken, a prominent global cryptocurrency exchange, has announced the listing of Sonic, previously known as FTM, with trading set to commence on May 5, 2025. This move follows a conversion from FTM to Sonic, aimed at enhancing trading activity on the platform. However, the listing has raised concerns as USDC deposits and withdrawals for Sonic remain unconfirmed, leading to market speculation and uncertainty.

Kraken's decision to halt all FTM activities and transition to Sonic marks a significant shift in the exchange's listing strategy. This strategic move is part of a collaboration between Kraken and Sonic Labs, led by CEO Michael Kong. The conversion from FTM to Sonic is conducted at a one-to-one rate, expanding Sonic's market presence and trading opportunities. The transition involves several key dates: on May 2 at 2:00 PM (UTC), trading, deposits, and withdrawals of FTM will be halted. Between May 2 and May 9, Kraken will automatically upgrade users' FTM holdings to Sonic. Trading of Sonic will go live on May 5.

The listing of Sonic on Kraken has sparked discussions about potential liquidity concerns. While the move is expected to influence trading volumes and increase liquidity, the absence of confirmed USDC deposit and withdrawal support has left users and investors awaiting further details. Previous exchange listings have historically boosted liquidity, but they have also prompted short-term volatility, especially in an uncertain financial landscape. The lack of explicit financial allocations from Kraken suggests a focus on organic growth, which could mitigate some of the volatility but also means that users will need to wait for more information on USDC support.

Past migrations, such as the shift from FTM to Sonic, have often been accompanied by volatility. Historical data shows that similar events have led to increased market activity and liquidity shifts, setting precedents for future market behavior. Experts, including those from Kanalcoin, have highlighted the potential for short-term price shifts post-listing. Kraken's capacity to influence trading dynamics is well-documented, but the outcomes will vary amidst the uncertain USDC integration. Michael Kong, CEO of Sonic Labs, has shared his insights on the transition, emphasizing the strategic importance of the move for both Sonic and Kraken.