- A meme coin using Pinkfong’s brand plunged after the company denied involvement.
- The token was created on Story Protocol without authorization from Pinkfong.
- Pinkfong threatened legal action against those misusing its intellectual property.
- The coin’s market cap soared to $519 million before rapidly collapsing.
- Investigations showed insider buying activity, but no proof connected to Story Protocol itself.
A meme coin modeled after Pinkfong, the company behind the viral “Baby Shark” song, collapsed on Thursday after Pinkfong announced it was not connected to the project. The token launched on Story Protocol, a blockchain network for handling creative rights, but was created without the company’s permission.
Pinkfong posted on X (formerly Twitter) that the coin was issued “without authorization,” adding that there would be “grave legal consequences” for violating its trademark and intellectual property. The meme coin, launched via the “IP World” platform, reached a market capitalization of $519 million just a few hours after its debut on Tuesday, according to DEX Screener. By Friday, its value had fallen to about $6.3 million.
Blockchain investigator ZachXBT shared screenshots showing that Story Protocol had promoted the ability for users to “remix and expand” on Pinkfong’s intellectual property. These posts were later deleted. “Fascinated to see how this collaboration unfolds,” said Story Protocol CEO S.Y. Lee in a now-removed comment.
On-chain analytics firm Bubblemaps reported finding evidence of insider activity related to the meme coin, with about 7% of the supply purchased shortly after launch. The company did not find any links between the activity and Story Protocol itself.
Pinkfong has officially endorsed two other meme coins on separate blockchains, Solana and BNB Chain. The disputed coin on Story Protocol was created by a project claiming to work with a licensed partner, but it was later discovered that the license was not valid. IP World, which hosted the coin, stated that because the intellectual property was not verified, “creator fees remain locked on the protocol and cannot be claimed until the rightful IP owner is confirmed.”
The incident led to increased scrutiny of Story Protocol. However, IP World clarified that the blockchain platform was not involved in the licensing issues, apologizing for any confusion caused. The price of Story’s own token has been volatile, ranging from $12.91 to around $9.35 since the controversy began, according to CoinGecko.
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