An undisclosed liquidity provider associated with the Synapse crosschain bridge reportedly sold 9 million SYN tokens at once, causing the asset’s market value to plummet by 25% from $0.4 to $0.31, according to blockchain observer Soingecko. Etherenscan data indicates that the SYN tokens were sold for $2.35 million at $0.26 per token.
Synapse acknowledged the liquidity decline but emphasized that the withdrawal of assets was unrelated to any exploits or security breaches of the crosschain bridge. In an official statement, Synapse clarified, “Today, liquidity provider Synapse sold all of its SYN tokens and removed liquidity. There were no protocol or bridge security breaches.”
Sources at Synapse suggest that the undisclosed liquidity provider may have ties to investment firm Nima Capital, a long-term partner of the project. DeFi Llama reports that Synapse has a Total Value Locked (TVL) of over $113 million and a market capitalization exceeding $67 million.
Sudden Token Sale Sends SYN Token Plummeting by 25% in Market Value
Previously, DeFi Llama experts highlighted data indicating that hackers managed to steal over $6.7 billion from decentralized finance protocols over the past year, with crypto bridges being among the hardest-hit entities.