Synapse Token Price Plummets as Nima Capital Dumps 9 Million SNY Tokens – Community Suspects Rug Pull

On Tuesday, the price of the Synapse (SNY) token suddenly plummeted from $0.34 to $0.19 as Nima Capital, the largest holder of the asset, dumped 9 million tokens—more than 40% of the circulating supply—on the Binance DEX. The dramatic crash triggered an online outcry, with some in the community accusing the venture capital firm of engaging in a “rug pull” market manipulation scheme.

The selloff came on the same day that Synapse announced the completion of its first round of funding, raising $4 million from investors including Nima Capital. The selloff was seemingly an attempt by the VC firm to profit from the funding round news before other investors had the opportunity.

This unexpected dump sent the price of the SNY token spiraling downwards, and caused a significant amount of investor backlash. Some accused Nima Capital of taking advantage of their insider knowledge of Synapse’s upcoming fundraising announcement in order to pump and dump the SNY token.

Others suggested that Nima’s large stake in SNY made them uniquely capable of manipulating the token’s price in the open markets.

So far, neither Synapse nor Nima Capital have made any statement in response to the criticism. The sudden selloff caused SNY’s market capitalization to drop from around $66 million to just below $37 million; the token has since regained some of its lost ground and is currently trading at around $0.28.