Synapse Token Plummets 25% In Value Following Large Whale Transaction

September 5, 2023 - Around 2 mins mins to read

Key Points:

Synapse token (SYN) decreased by 25% after a whale dumped 9M SYN.
Transaction volume spiked by nearly 1187% following the dumping.
Synapse Labs is investigating the unusual activity on their wallets and is working to get in touch with the whale.

Synapse token (SYN) dropped 25% after a whale dumped 9M SYN for 2.35M USDC. Transaction volume spiked. Investigation underway.

Lookonchain recently reported that the Synapse token (SYN) has experienced a sudden decrease of 25% in value after a whale dumped all 9 million SYN for 2.35 million USDC at a price of $0.26. The whale had received 10 million SYN ($3.4 million) from the “Synapse: Executor 2” wallet on April 5th, and currently holds no SYN.

The transaction volume spiked by nearly 1187% following the dumping. As shown by CoinMarketCap data, SYN is currently trading at $0.33 after fluctuating at around $0.4 five hours ago.

Synapse Token Plummets 25% In Value Following Large Whale Transaction — *Source: CoinMarketCap*

According to Synapse Labs, the aforementioned whale is a liquidity provider who sold his SYN tokens and removed liquidity on the day. Synapse Labs is investigating the unusual activity on their wallets and is working to get in touch with them. There was no security breach of the protocol or bridge.

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.

There was no security breach of the protocol or bridge.

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— Synapse Labs (@SynapseProtocol) September 5, 2023

In this particular case, the sudden decrease in the value of SYN is a result of the whale dumping a large amount of tokens, causing a drop in demand and driving down the price. The increase in transaction volume may be attributed to investors taking advantage of the lower price to buy more SYN.

As of now, it is unclear whether the liquidity provider’s actions are related to the whale dumping. Synapse Labs’ investigation will provide more information on the situation.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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