1 year ago
Cross-chain span Synapse has seen the worth of its autochthonal token SYN plummet aft a liquidity supplier (LP) dumped each their tokens. According to information from CoinGecko, the token’s terms declined by astir 25% a fewer hours aft the sell-off.
On Tuesday, 5th of August, Synapse Labs announced – via a station connected X (formerly Twitter) – that 1 of the liquidity providers sold their SYN tokens and removed liquidity from the Synapse protocol.
Lookonchain reported a whale dumping 9 cardinal SYN tokens an hr aft this disclosure. According to the on-chain analytics platform, the whale sold the tokens for astir 2.35 cardinal USDC successful 2 abstracted transactions astatine $0.26.
Additionally, Lookonchain revealed that the whale received these offloaded funds from the “Synapse: Executor 2” wallet, establishing a nexus with Synapse Labs’ caller announcement.
Meanwhile, Colin Wu’s report corroborated this on-chain find portion adding that $37.537 cardinal successful stablecoin liquidity was removed from the Synapse protocol.
Crypto Community Points Finger At Nima Capital
Various reports person emerged successful the past fewer hours, speculating connected the individuality of the liquidity supplier liable for the 9 cardinal token sell-off and liquidity removal. Crypto researcher Wazz claims that Nima Capital is the LP down these actions and has breached its liquidity-provisioning statement 8 months early.
Even VCs are rugging present @NimaCapital dumped 9M $SYN and removed each stablecoin liquidity 8 months earlier the agreed gov proposal
Their tract went offline and twitter protected excessively https://t.co/ShlYcZhFbz pic.twitter.com/1ncxP13XYV
— Wazz (@WazzCrypto) September 4, 2023
In March, Nima Capital, a crypto task superior firm, was designated Synapse’s archetypal liquidity provider. According to the proposal, the steadfast committed to providing $40 cardinal successful actively managed stablecoin liquidity implicit 12 months portion receiving 33% of span and swap fees.
Nima Capital appears to person constricted its integer presence. As of this writing, the company’s website is offline and inaccessible to the public. Meanwhile, entree to the firm’s X relationship has been restricted and is lone disposable to confirmed followers.
It is worthy noting that Synapse Labs didn’t uncover the individuality of the liquidity supplier successful its announcement, and the squad has yet to supply immoderate further updates connected the situation.
The liquidity removal and token sell-off person besides impacted Synapse’s full worth locked (TVL). According to DefiLlama data, the cross-chain protocol’s TVL has dipped by astir 20% successful the past day.
SYN Succumbs To Selling Pressure, Price Dips By 25%
As noted earlier, the worth of SYN suffered an astir 25% diminution aft the liquidity supplier dumped its holdings. The token’s terms crashed from $0.401 to $0.309 successful hours.
SYN has since been showing glimpses of recovery, arsenic it present trades supra $0.35. According to CoinGecko data, the token is valued astatine 0.356092, with a 0.5% terms summation successful the past hour.
A broader look astatine its terms show shows that the SYN token has struggled successful the past fewer months. After notching a yearly precocious of $1.59 successful precocious February, the cryptocurrency has reversed each its gains, trading 77% beneath the 2023 peak.
Featured representation from FreePik, illustration from TradingView
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