Synapse confirms investigation into liquidity provider’s ‘unusual activity’

Last month, Nima Capital was tied to the $80 million sale of a condo

article-image

Cinemato/Shutterstock modified by Blockworks

share

Venture capital firm Nima Capital allegedly sold more than nine million Synapse (SYN) tokens, drawing the attention of market watchers and developers. 

Synapse Labs acknowledged the sale and liquidity removal in a post on X, formerly Twitter, saying that it is “investigating unusual activity on their wallets and are working to get in touch with them” though Synapse did not disclose who the “liquidity provider” was. 

Loading Tweet..

Nima Capital’s website has since gone offline, and Nima Capital did not immediately respond to a request for comment. Their account on X is locked, meaning that users must be approved to follow the account in order to access their posts.

Users quickly connected the sale to Nima Capital after user Spreek posted a screenshot of the sale.

Loading Tweet..

The Wall Street Journal reported in August that a condo linked to Nima Capital was sold for roughly $80 million.  

On March 14, a proposal — which later passed a vote — was made by ModestFarmer to engage with liquidity providers and named Nima Capital as the first liquidity provider.

As part of the terms, Nima Capital provided $40 million of locked stablecoin liquidity over a 12-month period. In return, Nima Capital received a SYN grant for the “currently planned stablecoin emissions and 33% of bridge & swap fees for the duration of the term, aligning a long-term capital partner with the DAO.”

The price of SYN fell following the sale, declining roughly 12% in the last 24 hours at the time of publication.

Synapse did not immediately respond to a request for comment.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Ethereum Dencun will enable Ethereum transactions to be submitted as blobs, potentially alleviating the costs of posting data on the blockchain

article-image

After a rocky start, bitcoin ETF shareholders are now well in the green

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile