The crypto market is abuzz as the bearish trend for Story (IP) intensifies, sparked by a major leadership shakeup. On Monday, digital tokens saw a sharp decline, with the global crypto market cap falling by 1.30%, bringing about widespread skepticism toward select assets such as Story (IP).
What Happened to Story?
Over the weekend, Story caught the attention of investors when its co-founder, Jason Zhao, announced his exit from his full-time role. Zhao, who had been integral to Story’s development for 3.5 years, will now serve as a strategic advisor, leaving behind what many viewed as a high-potential project.
Taking to X (formerly Twitter), Zhao reflected on his time with the company, revealing that Story began as a ‘whiteboard sketch’ and transformed into a prominent ecosystem supporting intellectual properties (IPs) like Balmain and BTS. Furthermore, the project had successfully raised over $130 million from top-tier backers, including Andreessen Horowitz (a16z).
However, despite its achievements, Zhao has chosen to pivot his focus toward AI-backed industries, particularly through his new venture, Poseidon, which aims to drive innovation in robotics, space exploration, and biopharma through artificial intelligence.
Investor Backlash and Market Implications
While Zhao exuded optimism, investors and crypto enthusiasts expressed frustration over the timing of his departure. Just weeks after Story’s token generation event (TGE), Zhao’s exit was perceived as a red flag, with many accusing the leadership of lacking a sustainable product roadmap despite the project’s $130 million backing.
Criticism poured in across social media platforms, as users questioned Zhao’s commitment. One user stated, “You sold a dream to hundreds during one of the toughest job markets, then abandoned ship. This reputational damage will follow you indefinitely.”
The bearish sentiment surrounding Story intensified, and its native token plummeted to $5.66 from an intraday high of $6.04. Amid Zhao’s exit and broader market declines, short-term selling momentum remains dominant, closely mirroring token trends seen earlier this year—such as Shiba Inu’s 10% plunge following its leadership transition.
What Lies Ahead for Story?
For investors, the uncertainty surrounding leadership transitions in blockchain and cryptocurrency projects serves as a reminder to remain vigilant. As Story works to address growing concerns and rebuild trust, experts recommend monitoring the project’s upcoming announcements and assessing its long-term roadmap.
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