The token SYN of the cross-chain bridge Synapse suffered a sharp decline today, with a drop of more than 20% in the past 24 hours.

Since hacker attacks on cross-chain bridges have been reported from time to time, the community originally thought that there was a problem with the Synapse protocol. However, officials quickly came forward to clarify that there was no security vulnerability in the protocol and that the token's decline was caused by a liquidity provider (LP) withdrawing liquidity and selling tokens. The official wrote in the announcement:

"A Synapse liquidity provider sold their SYN tokens and removed liquidity today. We are investigating unusual activity on their wallet and working to contact them. Will update as soon as more information becomes available."

A Synapse liquidity provider sold their SYN tokens and removed liquidity today. We're investigating unusual activity on their wallets and are working to get in touch with them. Will update once there is more info.There was no security breach of the protocol or bridge.4

— Synapse Labs (@SynapseProtocol) September 5, 2023

Even if you bear a huge amount of slippage, you still have to suffer it.

The identity of the seller is not yet known. However, according to the data shared by Lookonchain, the address at the beginning of 0x4dF seems to be the culprit that caused the sharp decline of the token. This address received 9 million SYN tokens from the address marked as Synapse: Executor 2 10 days ago, and today All were sold at an average price of $0.26 (due to a sharp price slide) in exchange for $2.35 million in stablecoin USDC.

According to this article, SYN was severely hit and plummeted by more than 20%! Synapse explanation: safe and sound, caused by LP selling tokens. First appeared in Zombit.