An unnamed liquidity provider sold millions of SYN, the native token of the cross-chain bridge Synapse, prompting a sharp drop in its price.
The price of SYN fell by almost 25% to just over $0.30 early on September 5, before recovering slightly to its current level of $0.34, according to CoinGecko data.
A few hours later, Synapse Labs, the main contributor to the cross-chain bridge, said in a statement issued on X, formerly known as Twitter, “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.” The company added that there has been no security breach of the protocol or bridge.
The identity of the seller is yet to be confirmed. Synapse Labs did not immediately respond to a request for comment.
Seller no longer holds SYN
Lookonchain, a blockchain analyst, tweeted that a whale — a trader influential because of the size of their positions — had sold off 9 million SYN for 2.35 million in USDC, the stablecoin, at a price of $0.26. Lookonchain added that the seller no longer holds any SYN.
According to Synapse Labs’ website, the Synapse bridge currently boasts $123.5 million in Total Value Locked and total volume of $42 billion.
A report produced by The Block Research covering cross-chain bridge activity in the second quarter put Synapse’s volume growth for the period at -$395 million.