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Cross-chain bridge Synapse has seen the value of its native token SYN plummet after a liquidity provider (LP) dumped all their tokens. According to data from CoinGecko, the token\u2019s price declined by nearly 25% a few hours after the sell-off.<\/span><\/p>\n On Tuesday, 5th of August, Synapse Labs announced \u2013 via <\/span>a post on X<\/span><\/a> (formerly Twitter) \u2013 that one of the liquidity providers sold their SYN tokens and removed liquidity from the Synapse protocol.\u00a0<\/span><\/p>\n Lookonchain reported<\/a> a whale dumping 9 million SYN tokens an hour after this disclosure. According to the on-chain analytics platform, the whale sold the tokens for roughly 2.35 million USDC in two separate transactions at $0.26.<\/span><\/p>\n Additionally, Lookonchain revealed that the whale received these offloaded funds from the \u201cSynapse: Executor 2\u201d wallet, establishing a link with Synapse Labs\u2019 recent announcement.<\/span><\/p>\n Meanwhile, <\/span>Colin Wu\u2019s report<\/span><\/a> corroborated this on-chain discovery while adding that $37.537 million in stablecoin liquidity was removed from the Synapse protocol.\u00a0<\/span><\/p>\n Various reports have emerged in the last few hours, speculating on the identity of the liquidity provider responsible for the 9 million token sell-off and liquidity removal. Crypto researcher Wazz claims<\/a> that Nima Capital is the LP behind these actions and has broken its liquidity-provisioning agreement eight months early.<\/span><\/p>\n Even VCs are rugging now @NimaCapital<\/a> dumped 9M $SYN<\/a> and removed all stablecoin liquidity 8 months before the agreed gov proposal<\/p>\n Their site went offline and twitter protected too https:\/\/t.co\/ShlYcZhFbz<\/a> pic.twitter.com\/1ncxP13XYV<\/a><\/p>\n \u2014 Wazz (@WazzCrypto) September 4, 2023<\/a><\/p>\n<\/blockquote>\n In March, Nima Capital, a crypto venture capital firm, was designated Synapse\u2019s first liquidity provider. According to the proposal, the firm committed to providing $40 million in actively managed stablecoin liquidity over twelve months while receiving 33% of bridge and swap fees.<\/span><\/p>\n Nima Capital appears to have limited its digital presence. As of this writing, the <\/span>company\u2019s website<\/span><\/a> is offline and inaccessible to the public. Meanwhile, access to the firm\u2019s X account has been restricted and is only available to confirmed followers.\u00a0<\/span><\/p>\n It is worth noting that Synapse Labs didn\u2019t reveal the identity of the liquidity provider in its announcement, and the team has yet to provide any further updates on the situation.<\/span><\/p>\n The liquidity removal and token sell-off have also impacted Synapse\u2019s total value locked (TVL). According to DefiLlama data<\/a>, the cross-chain protocol\u2019s TVL has dipped by nearly 20% in the past day.<\/p>\n As noted earlier, the value of SYN suffered an almost 25% decline after the liquidity provider dumped its holdings. The token\u2019s price crashed from $0.401 to $0.309 in hours.<\/span><\/p>\n SYN has since been showing glimpses of recovery, as it now trades above $0.35. According to <\/span>CoinGecko data<\/span><\/a>, the token is valued at 0.356092, with a 0.5% price increase in the past hour.<\/span><\/p>\n A broader look at its price performance shows that the SYN token has struggled in the last few months. After notching a yearly high of $1.59 in late February, the cryptocurrency<\/span>\u00a0has reversed all its gains, trading 77% beneath the 2023 peak.<\/span><\/p>\nCrypto Community Points Finger At Nima Capital<\/span><\/h2>\n
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SYN Succumbs To Selling Pressure, Price Dips By 25%\u00a0<\/span><\/h2>\n