Baby Shark Token on Story Protocol Drops 90% as Brand-Owner Denies Authorization

The Baby Shark token, launched as an official representation of the popular children’s video, plummeted over 90% in value following a denial of authorization from brand owner Pinkfong. Initially priced at 35 cents, the token dropped to under 0.064 cents after it was revealed that the entity minting the coin, identified as a Pinkfong licensee, lacked the necessary rights. Pinkfong clarified that only two tokens, on the Solana and BNB Chain, have its official endorsement. The token's rise had been fueled by influencer promotions and expectations of an official collaboration. The issuing platform, IP.World, confirmed that it mistakenly relied on incorrect rights provided by the licensee, leading to a market cap collapse that was once at $200 million. This incident raises concerns about the credibility of token offerings when unverified rights are involved, emphasizing the need for proper authorization in the rapidly evolving landscape of crypto assets.

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