Key Takeaways

What fueled IP’s latest fall on the charts?

Story’s native token, IP, fell sharply over intellectual property disputes tied to tokens issued on its platform.

What were the consequences of IP’s bout of price depreciation?

Derivatives were key drivers of the fall, especially as massive liquidity outflows hit the market.

Story Protocol’s IP recorded a notable decline on the charts, dropping by 10% over the past 24 hours. This, following growing concerns about intellectual property issues on the platform.

In fact, at the time of writing, market analysis seemed to indicate that the decline could be further affected by derivative investors. Especially if they continue to place major bets against the asset.

$200 million in outflows

Story Protocol, a platform built to monetize creator tokens and intellectual property, has suffered heavily due to a dispute surrounding the creator token – Baby Shark.

Pinkfong, an entertainment company, denied any association with Baby Shark, triggering massive outflows in the early hours of 29 September.

After the announcement, the Baby Shark token tumbled by 90%, with its market capitalization plunging from over $200 million to a press time value of just $2.33 million.

At press time, Community Sentiment, an aggregator used to gauge investor positions, revealed that only 40% of participants were bullish, while the majority turned sellers.

Interestingly, the sell-off was not coordinated across the board though. Instead, it was

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Author: Olayiwola Dolapo