Token Baby Shark falls 90% after owners of the brand denies relationship with memecoin

• Pinkfong, owners of the musical piece, denied any link with the token Baby Shark in Story Protocol.
• The price of the token falls from USD $ 0.35 to less than USD $ 0.00064 in a matter of days.
• IP.World He admits that there could be errors in license rights to issue the memecoin.

For anyone it is a secret that the Memecoin market can be highly risky, and this is good for how sensitive many tokens can be speculative. A good example of this may be the case of “Baby Shark”digital currency associated with the iconic song for children, which collapsed after a clarification made by the owners of the musical piece.

The collapse of the token Baby Shark

According to a report published by COINDESK, The popular Token Baby Sharkwhich was promoted last week as the “official” of the most watched video in YouTube, 90% collapsed after the brand owner clarified that it had no authorization to use it.

The Token Baby Sharkwhich is negotiated in Story Protocola network Blockchain specialized in intellectual property rights, It went from a maximum of USD $ 0.35 on Tuesday to less than USD $ 0.00064. The collapse began after Pinkfong Co., The South Korean company owner of the brand Baby Shark, He issued an official statement on X this Friday denying any relationship with the project.

Baby Shark It is an international children’s phenomenon: a two -minute animated music video launched in 2016 that has exceeded 16,000 million views in YouTube The Token had a market capitalization of USD $ 200 million before the fall.

The broadcast platform IP.World He acknowledged having trusted defective license rights provided by a third party. According to the company, its verification process blocked the release of commissions for creators until confirming the authenticity of the license. “We and the community had all the reasons to believe that the launch was fully authorized”the entity said in a statement reviewed by COINDESK.

In your statement, Pinkfong He said that only two assets are officially endorsed: a meme Baby Shark in Solarium and Baby Shark Universe Token in BNB Chain. This clarification failed to calm the traders, who had bought under the impression that it was an official collaboration, promoted by the promotion of Story Protocol and influencers of the sector.

The collapse of the currency shows the risks of speculation in memecoins associated with popular brands without verifying its legitimacy. Influencers and popular accounts in social networks had amplified the narrative of the “Official Token” in the days prior to the statement of Pinkfong, increasing the initial euphoria and subsequent frustration of buyers.

The context of the issuance and reaction of the market

The Token Baby Shark It was issued through IP.World on September 23. The analysis firm Bublemaps He reported that at least one entity channeled USD $ 10 million through multiple new portfolios to acquire 7% of the supply in the first minute of negotiation. This maneuver reflects how actors with advanced information or tools can take advantage of high profile launches before the general public participates.

The case underlines the importance of making due diligence before investing in tokens associated with recognized brands. Even when there are alleged official licenses or ads, investors may be exposed to significant losses if authorization is not legitimate or if the conditions change suddenly.

The episode Baby Shark It could have broader repercussions on projects that seek to tokenizar intellectual property rights in block chains. Story Protocolby positioning itself as a platform for creative assets and IP, faces a reputational challenge after having promoted a token that turned out not to be authorized.

Some reports indicate that this case could accelerate the adoption of more strict mechanisms for verification of licenses and rights in Blockchain, including on-chain records, cryptographic certificates or third-party audits. Without these measures, the issuance of tokens supported by brands will continue to be vulnerable to controversies and possible fraud.

For users, the lesson is clear: the fame of a product or brand does not guarantee the legitimacy of a token. Transparency and diligence are essential in a still young and highly speculative market.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

WARNING: Diariobitcoin offers informative and educational content on various topics, including cryptocurrencies, AI, technology and regulations. We do not provide financial advice. Cryptactive investments are high risk and may not be adequate for all. Investigate, consult an expert and verify the applicable legislation before investing. I could lose all its capital.

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