‘Baby Shark’ Token Plummets 90% After Unauthorized Issuance Revealed
The "Baby Shark" token, once hyped as officially linked to the popular YouTube video, plummeted by 90% after it was revealed that the company minting it did not have proper authorization.
The token's value fell from 35 cents to under 0.064 cents after Pinkfong Co., the brand owner, announced the token had no affiliation with them.
"Baby Shark," a widely viewed children's video, has over 16 billion views since 2016. The token reached a peak market cap of $200 million before its legitimacy was questioned.
IP.World, which issued the token, claimed it relied on incorrect rights by a Pinkfong licensee, leading to blocked creator fees during the verification process.
Pinkfong stated that only two assets are officially endorsed: a Baby Shark Meme on Solana and a Baby Shark Universe Token on BNB Chain.
Despite Pinkfong's statement, many traders were misled into believing the token had official backing, partly due to influencer endorsements and promotional activities by Story Protocol.
Blockchain analytics firm Bubblemaps identified a fund transfer through multiple wallets, snapping up $10 million worth of supply in the first minute of trading, about 7% of the token’s supply.
