Synapse Token Price Plummets as Nima Capital Dumps 9 Million SNY Tokens – Community Suspects Rug Pull
On September 5, the native token of Synapse (SYN), a decentralized finance (DeFi) cross-chain bridge, experienced a substantial price drop as an unidentified liquidity provider offloaded approximately 9 million SYN tokens and withdrew all stablecoin liquidity from the platform.
Synapse stands out as a cross-chain bridge protocol, harnessing the power of Optimism technology. With an impressive track record, it boasts over 1.3 million users and a staggering $40 billion in volume.
Synapse's official X account confirmed the liquidity drop, attributing it to an "unknown liquidity provider." Notably, the platform stated that this event did not result from a security breach.
Further investigation revealed that the anonymous liquidity provider was linked to Nima Capital, a long-term capital partner of the Synapse project.
In light of recent events involving Nima Capital and Synapse's liquidity provisioning agreement, the crypto community has shed additional light on the situation.
Notably, the community emphasized that Nima Capital had effectively violated the terms of their liquidity provisioning agreement by withdrawing their support several months ahead of schedule.
Furthermore, many on-chain analytics hinted that these actions could be interpreted as a "rug pull" within the crypto community.
To substantiate these claims, a post from Synapse's governance forum dated March 2023 has come to attention. This post contains details of the liquidity provisioning agreement between Synapse and Nima Capital.
According to the agreement, Nima Capital was committed to providing approximately $40 million in stablecoin liquidity for one year.
In return for their support, Nima Capital was slated to receive 33% of the bridge and swap fees generated by
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