Baby Shark Token Drops 90% after IP Dispute

Story Protocol’s Baby Shark token plummeted over 90% after Pinkfong disavowed any licensing involvement. Mass sell-offs ensued, triggered by Pinkfong’s denial of collaboration, leading to significant market disruption and investor losses.

Story Protocol’s Baby Shark token collapsed over 90% in September 2025 after Pinkfong denied any licensing ties, launching major sell-offs. This occurred shortly after the token’s issuance on Story Protocol via IP.World.

Pinkfong’s statement on social media triggered an abrupt market reaction, causing Baby Shark tokens to plummet in value. This incident underscores the volatility associated with social tokens and unverified partnerships.

Story Protocol launched the Baby Shark token in partnership with IP.World, claiming to hold valid rights. Pinkfong’s public disavowal of any partnership led to a massive sell-off. Market confidence was quickly eroded.

The market impact on retail investors was severe, as the token’s value decreased rapidly. The incident also raised concerns about the verification processes of licensing rights in decentralized token projects, questioning ongoing practices.

Pinkfong’s denial subsequently caused a contractual and operational shake-up. Missteps in verifying IP rights by IP.World resulted in panic selling.

“We have no affiliation whatsoever with any Baby Shark token issued on Story Protocol or IP.World. There is no official collaboration, and we take unauthorized use of our IP very seriously.” – Pinkfong, Rights Owner

Market participants faced immediate losses, illustrating the risks associated with digital asset investments.

Experts see potential implications for regulatory scrutiny over token issuance and legal adherence to intellectual property rights. This could affect future token launches, requiring improved due diligence. Broader crypto market remains stable despite the incident.