Story’s [IP] 10% fall – How intellectual property disputes sparked $200M in outflows

Key takeout

What do you find in the latest fall fall Fulied on Charts IP?

IP, the native token of Story, has fallen sharply into intellectual property disputes related to tokens issued on the platform.

What was the outcome of the IP price drop match?

Derivatives were a key factor in the fall, especially as large-scale liquidity spills hit the market.

Story Protocol’s IP recorded a marked decline on the chart, down 10% over the past 24 hours. This has led to growing concerns about intellectual property issues on the platform.

In fact, at the time of writing, market analysis appeared to indicate that the decline could be further affected by derivative investors. Especially if they continue to make big bets on their assets.

200 million dollars outflow

A platform built to monetize creator tokens and intellectual property, Story Protocol is suffering deeply from the conflict surrounding creator tokens Baby Shark.

Entertainment company Pink Phong rejected a relationship with baby sharks, causing a massive outbreak early on September 29th.

After the announcement, baby shark tokens fell 90%, with market capitalization plunging from over $200 million to just $2.33 million.

Source: CoinMarketCap

At the press conference, Community Sentiment, an aggregator used to measure investor positions, revealed that only 40% of participants were bullish and the majority became sellers.

Interestingly, the sale was not fully adjusted. Instead, it was driven by a specific segment of the market that accelerated decline.

Investors were used

Leveraged traders have proven to be the most bearish, amplifying downward pressure on IP prices.

In fact, Coinglass’ derivatives market data revealed that liquidity spills over the past 24 hours reached $20 million. Open interest fell to $273 million.

Source: CoinMarketCap

Derivative trading volume also weakened, dropping the long ratio to 0.95, below the 1 neutral threshold.

This magnitude reduction usually means that more investors are shorting their assets and placing themselves in order to benefit from further downside movements.

Spot trading activities have also been signed, with overall volume down more than 54% over the past 24 hours to $304 million. This implies that many investors are actively involved, with many choosing to choose between selling or bystanding.

This is what comes next…

Despite the massive outflow of liquidity, market sentiment suggested that the asset direction could be surprisingly bullish.

This perspective was based on the layout of liquidity clusters above press-time prices, as revealed in the liquidation heat map.

Source: Coinglass

However, prior to the potential gathering, Altcoin can first retest the liquidity cluster for $8.4 and use it as a catalyst for a wider movement.

If successful, the IP is likely to close to double digit territory and can rebound to a much higher level.