Synapse Token Price Plummets as Nima Capital Dumps 9 Million SNY Tokens – Community Suspects Rug Pull
The SNY token, the native token of Synapse, has plunged more than 80 percent on Sept. 10 after prominent investor Nima Capital dumped nine million SNY tokens on the open market. The news has shaken the entire Synapse community, as many members suspect it was a ‘rug pull.’
A rug pull, in the crypto world, is when a project’s developer or founding team suddenly dumps a large number of tokens, causing a sharp drop in the token’s price. These dumps are typically done to profit from artificially-inflated prices.
Nima Capital, which is a fund that invests in blockchain-related startups, said it was taking profits after having participated in the Synapse’s token sale on April 20. However, community members were quick to point out that the fund’s exit was much faster than expected and that the sudden drop in the token’s price was unusually deep.
Synapse, which is developing a platform that combines blockchain, AI, and machine learning to facilitate tokenizing, trading, and tracking tokenized assets, did not release a statement directly addressing the matter. However, the team has promised to take legal action against “market manipulators and/or other bad actors.”
The whole incident has left the token holders feeling betrayed and their trust in the project and its team broken. Many investors have seen a large portion of the profits they made during the token sale evaporate in a matter of hours.
At the time of writing, the SNY token has recovered slightly, trading at $0.0193, but it is still down 79.8 percent from its all-time high of $0.0969.