Synapse confirms investigation into liquidity provider’s ‘unusual activity’
Venture capital firm Nima Capital allegedly sold more than nine million Synapse (SYN) tokens, drawing the attention of market watchers and developers.
Synapse Labs acknowledged the sale and liquidity removal in a post on X, formerly Twitter, saying that it is “investigating unusual activity on their wallets and are working to get in touch with them” though Synapse did not disclose who the “liquidity provider” was.
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.
Nima Capital’s website has since gone offline, and Nima Capital did not immediately respond to a request for comment. Their account on X is locked, meaning that users must be approved to follow the account in order to access their posts.
Users quickly connected the sale to Nima Capital after user Spreek posted a screenshot of the sale.
came from this mint (or bridge, idk how this token works tbh) 153 days ago pic.twitter.com/cllIWf9zpL — Spreek (@spreekaway) September 4, 2023
The Wall Street Journal reported in August that a condo linked to Nima Capital was sold for roughly $80 million.
On March 14, a proposal — which later passed a vote — was made by ModestFarmer to engage with liquidity providers and named Nima Capital as the first liquidity provider.
As part of the terms, Nima Capital provided $40 million of locked stablecoin liquidity over a 12-month period. In return, Nima Capital received a SYN grant for the “currently planned stablecoin emissions and 33% of bridge & swap fees for the duration of the term, aligning a long-term capital partner with the DAO.”
The price of SYN fell following the sale, declining roughly 12% in the last 24 hours at the time of publication.
Synapse did not immediately respond to a request for comment.
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