Nima Capital Allegedly Dumps 9M SYN Tokens Before Liquidity Period Ends, Price Tanks 20%
Cross-chain communications network Synapse has seen its native token price dump following a large removal of liquidity from the protocol. As a result, SYN prices have tanked more than 20% over the past few hours.
On September 5, Synapse Labs alerted its users that a liquidity provider had sold their tokens and removed liquidity.
Nima Capital Dumps Liquidity
The protocol team wrote that a Synapse liquidity provider sold their SYN tokens. Furthermore, this has caused a crash in its prices.
“We’re investigating unusual activity on their wallets and are working to get in touch with them. Will update once there is more info.”Advertisement
Researcher “Spreek” reported that ‘somebody’ just dumped 9 million SYN in two transactions with one minute separating them. The value of the tokens at the time was around $3.7 million.
Nima Capital was designated Synapse’s first liquidity partner following a proposal in March. The firm provided $40 million in “actively managed stablecoin liquidity for a 12-month term,” according to the proposal.
It appears that Nima Capital has pulled the plug with eight months remaining on its liquidity term.
Furthermore, Nima Capital’s website (nimacap.com) had gone offline at the time of writing. The firm’s X (Twitter) feed had also been set to “protected,” whereby only approved followers can view them.
Nima has also invested in NFT developer Flow, Fordefi, Eversify Labs, OneOf, and Morpho Labs over the past year or so. There were very few other details at the time of writing.
SYN Price Tanks
Synapse token prices fell 24% after the big sell-off a few hours ago. It was trading at $0.410 before crashing to $0.309 during early Asian trading on Tuesday.
At the time of writing, SYN had recovered marginally to trade at $0.339.
Furthermore, like most DeFi tokens, SYN had already been battered in the brutal bear market. It has lost 40% over the past month and is down 93% from its October 2021 all-time high of $4.92.