Baby Shark Meme Coin Bites the Dust

A meme coin capitalizing on the immensely popular "Baby Shark" brand has crashed after Pinkfong, the South Korean entertainment company behind the viral sensation, declared it had no affiliation with the token and threatened legal action.

The coin, launched on Story Protocol's network (designed for managing IP and derivative works), was reportedly issued without proper authorization. Pinkfong stated it would pursue legal consequences for any violations of intellectual property law.

Story Protocol aimed to streamline IP management, but this incident suggests potential complications arising from unauthorized use. The company has yet to respond to requests for comment.

The meme coin briefly surged to a $519 million market capitalization before plummeting. On-chain analysis firm Bubblemaps identified potential insider activity, revealing that around 7% of the token supply was quickly acquired.

Story Protocol's native token (STORY) also experienced volatility in the wake of the controversy, dipping from $12.91 to $7.24 before stabilizing around $9.35.

IP World, the platform that launched the unofficial coin, acknowledged working with a partner with licensing, however, the legitimacy of the license was not appropriately vetted. IP World stated that because the IP wasn't verified on their platform, creator fees are locked and cannot be claimed until the rightful IP owner is confirmed.

While the controversy has drawn scrutiny towards Story Protocol, IP World clarified that Story Protocol was not party to the licensing agreement or involved in licensing matters.

Key Takeaways

• Meme coins are high-risk investments. Ensure the project is associated with official sources before purchasing.
• Intellectual property rights must be verified.
• New platforms for IP management, like Story Protocol, face challenges in preventing unauthorized use of copyrighted material.