An unidentified liquidity provider sold millions of SYN, the native token of the cross-chain bridge Synapse, causing its price to plummet. According to CoinGecko data, the price of SYN plummeted about 25% to just over $0.30 early on September 5 before recovering slightly to its current position of $0.34.
A few hours later, Synapse Labs, the key contributor to the cross-chain bridge, said on X, formerly known as Twitter, that “a Synapse liquidity provider sold their SYN tokens and removed liquidity today.” We’re looking into strange behavior on their wallets and trying to contact them. Will update when further information becomes available.” According to the firm, there has been no security breach of the protocol or bridge.
The seller’s identity has yet to be confirmed. Synapse Labs did not reply promptly to a request for comment. Lookonchain, a blockchain expert, tweeted that a prominent whale—a prominent trader due to the number of their positions – sold 9 million SYN for $2.35 million in USDC, the stablecoin, for $0.26. Lookonchain further stated that the merchant no longer had any SYN.
According to Synapse Labs’ website, the Synapse bridge presently has a total value of $123.5 million and a total volume of $42 billion. Synapse’s volume growth for the second quarter was -$395 million, according to research published by The Block Research on cross-chain bridge activities.