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.
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.
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.