Synapse confirms investigation into liquidity provider’s ‘unusual activity’
Last month, Nima Capital was tied to the $80 million sale of a condo
Cinemato/Shutterstock modified by Blockworks
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.
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.
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.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- The Drop: Apps, games, memes and more.
- Lightspeed: All things Solana.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
