Once a staunch supporter of the Synapse cross-chain bridge, Nima Capital has abruptly exited its partnership, causing a temporary dip in SYN token prices. The venture capital firm sold over 9 million SYN tokens, leading to a 20% drop in the token’s value, which touched a multi-week low of $0.30.
Nima Capital also removed all stablecoin liquidity from the bridge. Despite this setback, the Synapse network remains secure and operational, and the token value has shown signs of recovery.
Synapse X, the project’s official account, confirmed the liquidity withdrawal but emphasized that the network’s integrity remains intact. This incident has raised questions about venture capital involvement in decentralized finance (DeFi) projects, especially given that Nima Capital had previously committed to a $40 million investment in SYN tokens and had received a grant from the project.
Etherscan records indicate that a “Synapse: Executor 2” wallet transferred 10 million SYN tokens to an undisclosed entity on April 5. These tokens, valued at $3.45 million at current rates, were subsequently sold in the market. Interestingly, this move occurred just months before activating the project’s governance plan.
Adding another layer of mystery, Nima Capital’s website has been taken down, and its Twitter account, known as X, has been closed. These actions have led to speculation that the firm has intentionally abandoned its obligations to the Synapse project.
While “rug pulls” are not unheard of in the DeFi ecosystem, they usually involve project founders or developers altering the code or shutting down the project. It is relatively uncommon for a venture capital firm to engage in such activities. The Synapse bridge, which facilitates cross-chain transactions, has been a target for exploiters in the past, but it remains secure, as confirmed by the project’s official account.
This incident serves as a wake-up call for investors and projects in the DeFi space, highlighting the importance of due diligence and transparent governance. Although the Synapse community has been shaken by Nima Capital’s actions, it remains resilient. The project continues to function, and its network is uncompromised. However, the event has ignited discussions about the need for stricter oversight and regulation of venture capital participation in DeFi projects.