Story (IP) turns bearish amid the co-founder’s departure and product concerns

Digital tokens slumped on Monday as the global crypto market cap plunged 1.30% in the past day to $3.92 trillion.

Most assets depict weakness after relative stability over the weekend.

This article evaluates Story (IP), which displays bearish sentiments, driven by the project’s leadership shakeup.

Story remained on the investor radar over the weekend as its co-founder, Jason Zhao, revealed he is exiting his full-time role.

He will now become a strategic advisor, ending his 3.5-year term as Story’s co-founder.

Zhao took it to X to reflect on his journey as Story’s leader, calling it his most meaningful experience.

He highlighted that Story started as a mere whiteboard sketch but grew into an ecosystem supporting intellectual properties (IPs) from recognized names like BTS and Balmain.

Moreover, the project secured over $130 million from renowned funders like a16z (Andreessen Horowitz).

Zhao dives deeper into AI

Despite achieving key milestones, Zhao believes it is time to explore a new calling.

He will prioritize developing the AI project Poseidon, which focuses on applying high-tech intelligence to leading industries like robotics, science, space exploration, and biopharma.

Community reaction

While Zhao maintained an optimistic tone in his farewell, enthusiasts weren’t forgiving.

Most individuals expressed frustration across social media platforms. They criticized the co-founders’ timing.

Zhao exited only weeks after Story’s TGE (token generation event).

Many perceive this as a substantial red flag, speculating that the project lacked a comprehensive product roadmap to justify its enormous funding and market valuations.

One X users highlighted Zhao’s betrayal, stating:

 IP price outlook

The native token hovers at $5.66 after a swift drop from an intraday high of $6.04.

Negative sentiments (as the community reacts to Zhao’s departure) and broad market declines drive Story.

IP will likely print more red candlesticks on its daily chart as selling momentum dominates the short-term outlook.

Notably, most tokens plummet after leadership exit, especially when a key player exits.

For instance, Shiba Inu lost more than 10% in January after Shytoshi Kusama stepped down as SHIB’s leader.