Story token plunges 6.3% after co-founder departs amid product uncertainty

Digital tokens associated with the blockchain-based intellectual property (IP) project Story have experienced a sharp decline in investor sentiment following the recent departure of co-founder Jason Zhao. Zhao, who led the project for 3.5 years and played a central role in scaling it from a whiteboard sketch to a multi-million-dollar ecosystem, announced his exit from his full-time role and will now serve as a strategic advisor while pursuing a new AI venture called Poseidon [1].

Zhao reflected on his tenure on X, highlighting Story’s transformation into a platform supporting IPs from high-profile entities such as BTS and Balmain, backed by over $130 million in funding from major investors, including a16z. However, his exit has raised doubts about the project’s long-term direction and product roadmap. Many investors view the timing as particularly concerning, given that it occurred just weeks after Story’s token generation event (TGE) [1]. The native token, IP, dropped from an intraday high of $6.04 to $5.66 within days, reflecting broader market weakness and negative sentiment around leadership uncertainty [1].

The community reaction has been largely negative, with many users expressing frustration over the perceived abandonment of the project at a critical juncture. One user on X accused Zhao of selling a “dream” to young professionals and then leaving for “greener pastures,” adding emotional weight to the bearish movement in the token’s price [1]. The backlash highlights growing concerns that the project may lack a comprehensive product strategy to justify its current valuation and market expectations.

Story’s downturn aligns with historical patterns in the crypto space. For instance, the token Shiba Inu fell more than 10% in January 2025 after its co-founder stepped down [1]. Leadership transitions, particularly those viewed as premature or lacking a clear succession plan, often trigger volatility and erode investor confidence. In Story’s case, the lack of clarity around post-Zhao leadership and project direction has intensified these concerns.

The broader crypto market has also contributed to the downward trend. As of the latest data, the global crypto market cap fell 1.30% in the past day to $3.92 trillion, with most assets showing weakness after a relatively stable weekend [1]. While external factors are influencing the market, the internal leadership shakeup has amplified doubts about Story’s ability to deliver on its ambitious vision without Zhao at the helm.

Investors are now scrutinizing the project’s long-term roadmap, particularly in the wake of the TGE, which many had expected to be a turning point. The absence of a detailed product strategy has led to speculation that the project may struggle to justify its current valuation. With the native token under pressure and investor sentiment turning bearish, Story faces a pivotal moment in its evolution [1].

Source: [1] [Story (IP) turns bearish amid the co-founder’s departure and product concerns](https://invezz.com/news/2025/08/18/story-ip-turns-bearish-amid-the-co-founders-departure-and-product-concerns/)