Story Protocol’s IP Token Experiences Wild 20% Price Swing in Unusual Trading Event
In a dramatic turn of events late Monday, Story Protocol’s IP token (IP) saw a significant 20% drop, only to quickly retrace the entire decline within a few hours, highlighting the volatile nature of crypto markets. The IP token, which had been trading near $4, plummeted to $3.27 in just four hours before surging back to above $4 shortly afterward.
The majority of the trading volume during this unusual session was concentrated on major exchanges Binance and OKX Spot, with over $40 million in volume recorded before the price plunge and $138 million post-recovery. This stark contrast in volume suggests that the price movement was primarily driven by spot market activity, as opposed to futures contracts, which saw a relatively minor $1.4 million in cumulative losses.
At the time of the volatility, the broader cryptocurrency market remained relatively stable, with Bitcoin hovering around $84,000, and no clear market-wide trends impacting altcoins. This made the IP token’s dramatic price swing appear isolated, drawing attention to it as a unique event.
Speculation quickly spread through the crypto community, with rumors circulating that large amounts of IP tokens, as well as other tokens like MOVE and LAYER, were being sold off at discounted prices through over-the-counter (OTC) deals. This sparked further conjecture about potential insider involvement or coordinated selling, fueling uncertainty across crypto circles on platforms like X.
One crypto observer on X speculated:
“I wonder if this is related to the Market maker by the name of S too… I wonder.”
The sudden price movement led to initial fears of a Mantra (OM)-like selloff, which saw its token lose 90% of its value in a similarly swift manner. However, unlike the OM event, the reasons behind the IP token’s drop remain unclear.
Story Protocol, the blockchain behind the IP token, focuses on tokenizing intellectual property (IP), providing a platform for creators to register, license, and monetize their work on-chain. This recent event has drawn attention to the volatility that can affect even niche tokens within the broader crypto ecosystem.
