Synapse Token Price Plummets as Nima Capital Dumps 9 Million SNY Tokens – Community Suspects Rug Pull
On January 7th 2021, the price of the Synapse (SNY) token erupted when Nima Capital announced that they had dumped 9 million SNY tokens onto Uniswap, resulting in a dramatic 25% price plunge. Community members immediately suspected a rug pull, which is when a project’s founders attempt to quickly cash out of their holdings while secretly driving the price down.
While some in the community had suspected a rug pull for days, the circumstantial evidence became overwhelming when Nima abruptly sold their entire SNY holdings, which comprised 20% of the total supply. Immediately following the announcement, SNY’s trading volumes tripled and price crashed overnight.
Investors flooded social media platforms to express outrage at the perceived rug pull and demand answers from the Synapse team. Some community members began digging into the identity of the massive buyer and uncovered an address believed to be associated with the Synapse team.
In response, the head of the Synapse Foundation, Adrián Gámez, issued a statement of apology in which he advised the community against “a rush to judgement” while admitting that there were bad actors involved in the sale and reiterating the Foundation’s commitment to investor protection. He also vowed to investigate further and take appropriate action to ensure a fair and transparent market.
The community continues to wait for more answers, but in the meantime, the SNY token’s price has recovered somewhat, although with seemingly heightened volatility in the near term. Many investors are remaining cautiously optimistic that the Synapse team will resolve the issue and keep true to their commitment to the investors.