"Story Protocol (IP) Plunges 20% the Previous Day, Attributed to Spot Selling Pressure"

Son Min

Summary

"It was reported that Story Protocol (IP) plunged 20% the previous day due to selling pressure in the spot market."
"IP trading volume surged after the crash, but losses in the futures market were relatively small."
"The current cause of IP's plunge is unclear, and suspicions of over-the-counter and insider trading have been raised within the virtual asset community."

*Chart of Story Protocol (IP) decline the previous day. OKX accounts for 23% of IP trading volume. / Photo=OKX Screenshot*

The sudden drop in Story Protocol (IP) the previous day was analyzed to be due to selling pressure in the spot market.

On the 15th (local time), CoinDesk stated, "The previous day, Story Protocol plunged 20% and then recovered its previous high," adding this analysis. It continued, "IP trading volume, which was around $40 million just before the crash, surged to over $138 million afterward. Nevertheless, the accumulated loss in the futures market is only $1.4 million," indicating that most of the selling pressure and trading volume occurred in the spot market. However, it added, "The exact cause has not been identified yet."

It further reported, "The flow of the virtual asset (cryptocurrency) market was stable the previous day. The plunge of the IP token is an event unrelated to the market flow," and noted that suspicions related to the IP token's plunge are arising within the community.

The previous day, suspicions such as "IP was massively sold through over-the-counter (OTC) trading. There was insider trading or organized selling pressure," were raised, centered around the virtual asset community.

As of 3:50 PM, IP is trading at $4.1474, up 8.46% from 24 hours ago, based on the OKX USDT market. According to CoinMarketCap, OKX accounted for 23% of IP spot trading volume, the highest proportion.