The price of Synapse Token (SNY), a cross-chain interoperability platform, has taken a sharp turn for the worse after Nima Capital dumped 9 million SNY tokens from their balance. The move sent shockwaves throughout the crypto community and led to speculation that this was a “rug-pull.”
Nima Capital, a venture capital group focused on blockchain and cryptocurrency, was one of the earliest investors in Synapse. They purchased the tokens directly from the team earlier in the year.
However, in a recent statement on Twitter, Nima Capital announced that they sold 6.5 million SNY tokens for a total of $775,000. The remaining 2.5 million tokens are to be sold by Nexus Mutual, an SNY exchange.
The move has sent a wave of panic throughout the SNY community as people fear “rug-pulls” such as we’ve seen with projects like Yam Finance, where the founders abruptly sold off their tokens and caused the token to crash.
Synapse has since taken to Twitter to calm the community and state that everything was done with full transparency and that there was no rug-pull. They added that the sale was conducted on the open market via their liquidity pools and not a single entity would have benefited more than the other.
The community isn’t pleased with the move and has continued to express skepticism and anger. Additionally, Synapse’s token price has slumped following the sale, from around $7 to $5.
Only time will tell if this is an isolated event or a sign of things to come. But, the community’s response has made it clear that they’re keeping a close eye and won’t be tolerating any shady moves.