Synthetix Founder Unlocks $6.5 Million Amid Market Challenges

Synthetix Founder Unlocks $6.5 Million Amid Market Volatility

Recent on-chain data indicates that Kain, the founder of Synthetix, has unlocked a substantial amount of $6.5 million from the project’s treasury. This move coincided with a transfer of $86,000 to SynthaMan, the former treasurer of the protocol, who faced liquidation during the recent downturn in the cryptocurrency market.

Blockchain investigator EmberCN shared these findings on the social media platform X, revealing that SynthaMan had also received approximately $112,000 in donations over the past two days. This surge of support came after SynthaMan lamented the loss of all their SNX tokens due to liquidation, stating they were left with “nothing.” In a heartfelt post, SynthaMan reached out to the community, saying:

• “Some folks asked for a donation wallet,” SynthaMan wrote on X. “If you guys are willing to donate or lend me some money until my ILV unlocks in September, you can send it to: Spartan.eth. Otherwise, I won’t even ask you for that. Just need to survive 1.5 months.”

According to Etherscan, a wallet associated with Kain was responsible for sending these tokens to the Spartan.eth address, further highlighting the interconnected nature of the Synthetix community during this challenging time.

Synthetix is a prominent decentralized finance (DeFi) protocol that offers liquidity for derivatives platforms throughout the DeFi ecosystem. Currently, the project boasts a total value locked (TVL) of $237 million, a significant decline of over 76% from its peak of $1.02 billion in March, as reported by DefiLlama. Furthermore, the Synthetix treasury holds approximately $39.4 million, according to data from Token Terminal.

As of now, Synthetix has not provided a response to CoinDesk’s request for comment regarding these developments.