User sold 9 million SYN and dumped the token by 25%.

An unknown liquidity provider sold 9 million Synapse cross-chain-bridge tokens (SYN), which led to a sharp drop in its price by 25% — from $0.40 to $0.31.

By the time of writing, the token had recovered to around $0.34.

A few hours after the incident, Synapse Labs representatives issued a statement on X (formerly Twitter).

“Today the Synapse supplier sold its SYN tokens and removed liquidity. We are investigating unusual activity in its wallets and are trying to contact him. We will report as soon as more information becomes available”, — wrote the project team.

Developers added that there were no security issues with the protocol or the bridge.

According to Lookonchain, a whale sold SYN tokens for $2.35 million — at $0.26 per token.

September 5, 2023 | 18:16Update:

According to trader going by the handle Wazz, the wallet is linked to venture firm Nima Capital. The company had previously received a grant in exchange for locking $40 million of SYN liquidity.

After withdrawals, the company’s website stopped operating, and its X account (formerly Twitter) was closed, the user added.

According to DeFi Llama, the total value locked in Synapse stands at $113.4 million, and its market capitalization reaches $65.4 million.

Earlier, the price of the meme token PEPE fell by 20% due to concerns about a scam. Later the developer said that three participants in the project reduced the number of required signatures and withdrew 16 trillion coins (~$15 million) from the wallet.