Story Protocol’s IP Token Experiences Wild 20% Swing Amidst Unusual Trading Activity
Story Protocol’s IP token (IP) experienced a sharp 20% decline late Monday, followed by a swift recovery, marking a dramatic and highly unusual trading session that caught the attention of the broader crypto market. After peaking at around $4, the token slumped to $3.27 within a few hours, before swiftly bouncing back above the $4 mark, retracing the entire drop in a matter of hours.
The bulk of the trading volume during this volatility occurred on major exchanges Binance and OKX Spot, with over $40 million traded before the price drop and a massive $138 million in trading volume recorded during the recovery. These significant trading volumes underscore the intensity of the market’s reaction, with spot sales and buys driving most of the action rather than futures-based positions.
While the wider crypto market was relatively stable, with Bitcoin holding steady near $84,000 and altcoins showing little movement, the sudden price swing of the IP token stood out as an isolated incident. This unusual price action raised questions among traders, especially as rumors surfaced that a large amount of IP tokens—along with other tokens such as MOVE and LAYER—had been sold through over-the-counter (OTC) deals at discounted prices. The speculation hinted at potential insider involvement or coordinated selling activity among certain groups within the market.
Despite these rumors and the dramatic price movement, IP-tracked futures experienced a relatively minimal impact, with only $1.4 million in cumulative losses, suggesting that the volatility was confined to the spot market. This indicates that actual buying and selling activity was the primary force behind the price swings.
Some in the community voiced concerns that the IP token’s rapid fluctuation mirrored the sell-off seen with Mantra (OM) tokens, which suffered a staggering 90% drop in just a few hours on Sunday. However, the cause behind the IP token’s volatility remains unclear, and market participants are left speculating on the reasons behind the sudden and drastic price movement.
Story Protocol, a Layer 1 blockchain project focused on tokenizing intellectual property (IP), continues to offer creators the ability to register, license, and monetize their works on-chain. Despite the temporary volatility surrounding its IP token, the project’s long-term goal of revolutionizing the IP space remains a key focus, and the recent market activity has not detracted from its broader vision.
