SYN token drops 55% as Arthur Hayes endorsement turns to $610,000 loss

SYN, the native token of the AI-linked Synapse project, fell 55% from its late-June peak to $0.2570, leaving BitMex co-founder Arthur Hayes with an unrealized loss of about $610,000.

Arkham Intelligence data shows Hayes purchased 6.16 million SYN tokens for roughly $2.2 million through the OTC desk Flowdesk on June 28, implying an entry price near $0.357. The position is now worth approximately $1.6 million, representing an unrealized loss of about $610,000, or 28%.

SYN reached a peak near $0.725 in late June after Hayes endorsed the project on June 28, saying he bought the token to gain exposure to Hypercall, an options exchange built by the Synapse team for the Hyperliquid ecosystem. The token has since erased all those gains, falling over 65% from its high.

From a technical perspective, SYN is trading inside a descending channel with resistance near $0.30, a level that aligns with the 0.618 Fibonacci retracement line and both the 20-day and 50-day exponential moving averages. A break above that confluence could push SYN toward $0.37, but failure to hold current levels may send the token toward the $0.200-$0.175 support zone, according to technical analysis by Yashu Gola.

The decline has renewed scrutiny of Hayes' history of promoting tokens before reducing his positions. Earlier this year, he sold his entire holdings in Hyperliquid (HYPE) and NEAR Protocol (NEAR) shortly after issuing bullish price forecasts, including a $150 target for HYPE. He also exited Worldcoin (WLD) days after his family office Maelstrom presented it as an AI-related trade.

Synapse describes itself as an AI-focused blockchain project. Its token, SYN on Ethereum, is used for governance and staking within the ecosystem. The project's key application, Hypercall, aims to bring options trading to the Hyperliquid ecosystem.

The broader AI-crypto narrative has lost momentum in recent weeks, with several tokens in the sector underperforming Bitcoin. SYN's decline from its June peak represents one of the steepest drawdowns among AI-linked tokens, raising questions about the durability of celebrity-endorsed token rallies in the current market environment.

This article is for informational purposes only and does not constitute investment advice.