What happened?
Story Protocol’s IP token plunged about 50% in 24 hours, falling from an all-time high near $14.99 to roughly $7.25 after aggressive profit-taking. The drop came after a fast 120% rally from about $5.58 that was fueled by hype around the Origin Summit in Seoul. Once the event buzz faded, weak fundamentals and heavy selling pushed the price sharply lower.
Who does this affect?
Retail traders and early investors who bought into the rally face big unrealized losses and heightened panic selling. Venture backers and funds that poured money into the project — including big names like a16z and other investors — now see the project’s valuation under scrutiny. Creators, partners, liquidity providers, and other IP-token projects also risk reputational damage and reduced demand for tokenized IP models.
Why does this matter?
This crash shows that event-driven pumps can evaporate quickly when a project’s fundamentals don’t support a huge market cap, prompting a broad re-rating of similar high-valuation, low-revenue crypto plays. With Story Protocol carrying about a $2.27 billion market cap but only ~$29 million TVL and roughly $679 in daily revenue, nervous markets may pull back from tokenized-IP projects and tighten funding. The technical break and risk of further drops toward $5 (or lower targets like $4.75 and $3.46) could trigger more stop-loss selling and spill over into other speculative tokens.