An unidentified liquidity provider sold millions of SYN, the native token of the cross-chain bridge Synapse, causing a sharp drop in its price.
This decline, which occurred on the night of September 5, continued for hours and all night long, and SYN fell to $0.3473.
Developer Team Made a Statement
After the sharp decline, a statement came from the SYN team.
A few hours later, Synapse Labs said in a statement on X, “A Synapse liquidity provider sold SYN tokens and removed liquidity today.
A Synapse liquidity provider sold their SYN tokens and removed liquidity today. We're investigating unusual activity on their wallets and are working to get in touch with them. Will update once there is more info.
There was no security breach of the protocol or bridge.
4
— Synapse Labs (@SynapseProtocol) September 5, 2023
We investigate unusual activity in their wallets and try to contact them. We will update when more information becomes available.” The company added that there were no security breaches in the protocol or bridge.
The identity of the seller has not yet been confirmed. Synapse Labs did not immediately respond to a request for comment.
Lookonchain, a blockchain analyst, tweeted that a whale, influential due to the size of his positions, sold 9 million SYN at a price of $0.26 for 2.35 million in USDC, the stablecoin. Lookonchain added that the merchant no longer holds SYN.
4 hours ago, a whale dumped all 9M $SYN for 2.35M $USDC at a price of $0.26, causing the price of $SYN to drop by ~25%.
The whale received 10M $SYN($3.4M) from "Synapse: Executor 2" wallet on Apr 5 and currently holds no $SYN.https://t.co/0WClIg9edL pic.twitter.com/nq144gecwB
— Lookonchain (@lookonchain) September 5, 2023
According to Synapse Labs' website, the Synapse bridge currently has a Total Locked Value of $123.5 million and total volume of $42 billion.
*This is not investment advice.
