Nima Capital Dumps 9M Synapse (SYN) Tokens, Price Tanks 20%

Nima Capital is suspected to have dumped nine million SYN tokens ahead of the agreed liquidity removal period.

by Brian Danga. Fact checked by: Ciaran Lawler, Editor: Stefan Trapp

Published: September 5, 2023 │ 4:45 PM GMT

Synapse (SYN) ended up in the dump. — *Created by Kornelija Poderskytė from DailyCoin*

An anonymous whale dumped 9M SYN tokens.
Observers have linked the activity to Nima Capital.
SYN’s price tanked as the VC went offline.

Nima Capital has been mentioned adversely on X, formerly Twitter, as the crypto fund behind a wallet address associated with the liquidation of nearly nine million SYN tokens.

Nima is a Venture Capital (VC) partner for Synapse and was recently awarded a grant by the project in exchange for securing $40 million worth of liquidity in SYN for a 12-month term.

Synapse Acknowledges Liquidity Rug

Confirming that there is no security breach, Synapse took to X, acknowledging a liquidity rag by an “unknown liquidity provider,” to whom the project promised to get in touch following an ongoing investigation into suspicious activity on their wallets.

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

Amidst online speculations, a researcher building on the Snotra Protocol posted a tweet confirming that the associated wallet address indeed belonged to the Synapse ecosystem, referencing it to a similar address recently receiving a $1 million grant from Optimism (OP).

this should be synapse, 1m grant from OP.

0x2431CBdc0792F5485c4cb0a9bEf06C4f21541D52 pic.twitter.com/ZWhtvOoynp
— astronomica (@0xastronomica) September 4, 2023

A user responding to the allegation noted that the liquidated funds were transferred to an entity that sold ten days ago.

In the meantime, while SYN is recovering at around $0.36 per the live data at press time, the token has lost over 20% due to the dump, which forced it to plummet to an earlier low of $0.30.

VC Goes Dark, Raises More Suspicion

A majority of online observers are associating a VC rug pull with the liquidation after Nima Capital’s website went offline and its official X account was locked, on top of claims by crypto researcher WazzCrypto that the firm removed its stablecoin liquidity eight months before the agreed proposal.

Even VCs are rugging now @NimaCapital dumped 9M $SYN and removed all stablecoin liquidity 8 months before the agreed gov proposal

Their site went offline and twitter protected too https://t.co/ShlYcZhFbz pic.twitter.com/1ncxP13XYV
— Wazz (@WazzCrypto) September 4, 2023

While rug pulls are a synonymous form of crypto scams in the nascent DeFi industry, where project owners often pull the plug after the native token attains a certain value, it is uncommon among VCs.