Synapse Token Price Plummets as Nima Capital Dumps 9 Million SNY Tokens – Community Suspects Rug Pull
The Synapse token's (SNY) price has plummeted following news of Nima Capital dumping a large number of tokens on the open market. The news comes following a period of rapid price appreciation for SNY – the native token of Synapse, the cross-chain interoperability platform that allows users across different blockchains to interact with each other in a completely secure manner. The majority of the tokens dumped by Nima Capital were purchased through prior sales, including the LaunchPad sale and the Uniswap listing, with some of the tokens coming from the founding team’s own wallets. The company justified its actions by citing the company’s need for liquidity, though this explanation has done little to assuage the furor from the SNY community. The dump has caused SNY token values to drop substantially, with the 24-hour high now standing at $0.83, down from $1.50 at the time of the dump. This comes after SNY experienced an incredible run-up in value earlier in the day, with the token having jumped from a low of below $0.50 to around $1.50 in the span of a few hours. At the same time, volatility in SNY has spiked, leading to fears of a potential “rug pull” being orchestrated by the company. As Synapse is still a relatively small crypto project, such moves could be devastating to its price and have a negative impact on the broader Ethereum ecosystem. In response, the Synapse team has taken to social media to try and quell the panic from the SNY community, reiterating that there is no evidence of a “rug pull” and that Nima’s actions were purely motivated by liquidity needs. The company also noted that the founding team’s SNY holdings have dropped significantly and that they are still invested in the token’s success. The Synapse team did also note, however, that they are closely reviewing Nima’s actions and an announcement on the matter is forthcoming. In the meantime, the SNY community is waiting with bated breath to see what the Synapse team does next and whether or not the company will take further steps to stabilize the token’s price and manage liquidity.