Why is this event noteworthy?
Story Protocol is a blockchain platform specifically providing solutions for protecting intellectual property rights on the blockchain—a concept considered ambitious but still far from practical application. This project has garnered significant attention as the IP token surged in value since late June, particularly after news broke that a company listed on the US stock exchange established a $340 million treasury fund.
It is quite rare for a crypto founder to abandon their project, especially for a young individual like Jason Zhao. He gained fame as a university student but successfully raised $140 million from major investment funds like a16z and Polychain Capital.
Since its launch in mid-February 2025, Story Protocol has faced allegations of manipulating the IP token price, similar to the scandal that occurred with Movement (MOVE). Notably, both projects have founders who are students from prestigious universities in the US, with grand ambitions to change the blockchain industry. A similar case occurred with the CEO and co-founder of Aptos, who resigned just one year in, coinciding with the token unlock date for the founding team.
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Community Reaction
Jason Zhao’s resignation announcement post attracted 1.5 million views and nearly 500 shares on X within just a day.
The majority of comments expressed dissatisfaction with this abrupt decision, especially since no clear reasons were provided. Many suspect that the co-founder successfully “dumped” his holdings through OTC (over-the-counter) transactions and maximized profits from the project before leaving to prepare for his next idea.
The outrage intensified as the community noticed contradictions in the resignation post. Jason Zhao praised his and Story Protocol’s “great” achievements, while in reality, the revenue from transaction fees on this blockchain over the past 24 hours was only $45, and the total value locked (TVL) was just $24.7 million.
Not limited to criticizing the founder, the community also questioned the role of the investment funds that supported Story Protocol. They argued that these organizations are shifting to purely profit-driven activities, exploiting uninformed retail investors rather than genuinely funding ideas that address practical problems.
Many experts and members of the crypto community view this event as an important wake-up call. They emphasize that not all projects are trustworthy, and young founders are not always role models to follow. The community calls for a boycott of individuals exhibiting such “quick-profit” behavior.
