Sonic Labs has removed Andre Cronje, Michael Kong, and David Richardson from its board as part of a broader restructuring, handing leadership to newly appointed chief executive Matt Visser and chief operating officer Kosta Kourkoumelis. The shift comes as the company faces weak market performance and declining on-chain activity.
Token drops as leadership reshuffles
The S token fell about 10% following the announcement and is now trading near $0.028, roughly 97% below its January 2025 peak of $1.03. The decline mirrors a steep drop in network usage, with total value locked at around $26 million, down from more than $1.1 billion in May 2025. The token’s market capitalization stands near $107 million.
The outgoing board members will no longer hold decision-making roles but remain financially connected to the project.
Second leadership overhaul in months
The latest changes mark Sonic Labs’ second executive shakeup in less than a year. In September 2025, Mitchell Demeter was appointed CEO, followed by a wave of resignations in February 2026 that left the board temporarily overseeing daily operations.
Visser is now steering the company with a focus on stability rather than expansion. He has emphasized consistent execution and tighter internal controls instead of launching new initiatives.
Governance and oversight take priority
Sonic Labs said it is introducing stricter governance measures, including the formation of a dedicated risk and compliance committee. The goal is to rebuild operational discipline and improve transparency after months of uncertainty.
Visser signaled that progress will be incremental, with the company focusing on steady improvements rather than sweeping changes in the near term.
Cronje clarifies role and shifts focus
Andre Cronje said his involvement at Sonic Labs was limited to technical development, including work on the Sonic Gateway. He stated he had no role in token emissions decisions or the shutdown of the legacy Opera network.
He also clarified that his “co-founder” label referred to his development contributions rather than organizational founding status. Cronje is now focusing on his decentralized finance project, Flying Tulip, which reached a $1 billion valuation after raising $200 million in August 2025 and currently holds about $70 million in locked value.
Network development continues despite challenges
Sonic Labs said its engineering work has continued without disruption. The team has merged around 400 software pull requests in 2026, completed two product releases, and is testing version 2.2.0 on a private network.
The restructuring leaves Sonic Labs pursuing recovery on two fronts: stabilizing its core network under new leadership and supporting ecosystem development tied to projects like Flying Tulip. Traders are likely to watch whether governance reforms and incremental progress can reverse the platform’s sharp decline.
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