Synapse token (SNY) price plummeted on October 8th after Nima Capital announced it had dumped 9 million SNY tokens from its reserve. The shocking revelation is the latest in a series of events that have rocked the community, as many suspect Nima Capital of conducting a rug pull.
The initial post from Nima Capital, discussing the dump and its reasons for doing so, was quitewidespread and sent shockwaves through the Synapse token community. Nima had argued that the liquidity of the token had declined substantially since their initial investment. As Nima owns more than 34% of the Syanpse token’s total supply, it appears that their insider dump likely had a significant impact on the SNY price.
The response from the Synapse token community has been largely negative. Reddit users began circulating the hashtag #SNYRugPull to discuss the potential rug pull, and others began accusing Nima Capital of market manipulation and preying on unsuspecting investors.
At the time of writing, SNY’s price has recovered somewhat from the initial dramatic decline, though it has not returned to its near $1 highs of prior weeks.
It is unclear what impact this event will have on the Synapse token in the future. Many investors feel that this event has exposed a potentially unstable market and have chosen to flee from SNY altogether. Others have argued that the sell off might have actually been beneficial for the coin as it provides an opportunity to shake out short-term investors and potentially balance the market, allowing for longer-term growth.