Simply put
- A meme coin related to the creators of Baby Shark has crashed.
- Pinkfong stated that tokens made using the Story Protocol are not valid.
- While Story Protocol deleted their original statement, Sleuth ZachxBT preserved some evidence.
A meme coin associated with Pink Fong fell on Thursday after the entertainment company, known for the YouTube hit Baby Shark, clarified that it had no association with the tokens in question.
This token was created using the Story Protocol’s framework designed for managing intellectual property and creating derivative works, but it issued Pinkfong without permission. According to a post on X, they warned of potential “serious legal consequences” for such violations.
Despite Story Protocol aiming to eliminate rent-seeking intermediaries in the IP sector, it seems that the misunderstanding between users might have prompted more legal challenges than the traditional processes for protecting Pinkfong’s IP rights.
Pink Fong itself is much more than just a character. This Korean company has amassed over 140 billion views on its YouTube channel and has created some of the most popular videos globally, with memorable lyrics like “Baby Shark, Doo Doo Doo.”
X’s now-removed post noted that according to a screenshot shared by the blockchain investigator ZachxBT, users could “remix and expand” upon the IP related to the Pink Fong mascot post-tokenization.
Sy Lee, co-founder and CEO of Story Protocol, was quoted in a now-deleted post saying, “It was fascinating to see how this collaboration unfolds.”
Meme Coin, which launched on the Story Protocol, reportedly had a market cap of $632 million by Friday. After a brief surge on Tuesday, the tokens saw their market capitalization reach $519 million.
The chain analysis tool Bubblemaps reported insider activities around meme coins, noting that while no direct link to Story Protocol was found, around 7% of the token supply was quickly acquired.
In the meantime, the price of the native tokens on the platform has fluctuated considerably—from $12.91 to $7.24—ending up around $9.35, according to data from a crypto provider.
Pink Fong does have two meme coins on the Solana and BNB chains, but these unofficial coins operate within the Story network. They initially launched via a platform called IP World, which reportedly claimed, “Degens, it’s built with Degens.”
The project initially claimed it worked with a licensed partner, but soon discovered that its agreement was invalid. Until verified, it seems no restrictions were applied to participating in the IP.
IP World expressed frustration over the situation, stating that since the IPs weren’t verified, “creator fees remain locked to the protocol and cannot be charged until a legitimate IP owner is confirmed.”
This unofficial Pink Fong meme coin’s failure has drawn scrutiny around Story Protocol from various industry watchers. However, IP World clarified that the networks supporting its services are largely unrelated to the real issues.
The Story Protocol clarified that it was not part of the agreement in question and was not involved in any licensing disputes, expressing regret for the confusion it caused.
