Jason Zhao, co-founder of Story Protocol, announced his departure after 3.5 years with the project in a shock move. This decision has sparked a fierce wave of debate within the community.
Will this development impact the price of the IP token?
Co-Founder Exit Shakes Story Protocol
Jason Zhao, co-founder of Story Protocol, has officially announced his departure. The exit of a key figure from a project right after completing the Token Generation Event (TGE) immediately triggered mixed reactions.
The project has raised approximately $134 million from various VCs and launched its token in February 2025. Notably, a US company recently bet $360 million on Story, and the IP token has also been added to Grayscale Research’s Top 20 list.
However, Story Protocol currently holds a Total Value Locked (TVL) of just around $25 million. Its daily fee revenue is only about $17, a modest figure compared to other blockchains.
Story’s TVL. Source: DefilLama
Some opinions suggest that Zhao’s exit is not just a personal decision but the result of power struggles within Story Protocol. Many accuse Jason Zhao of being ousted from the company he co-founded by individuals “more conniving than him and with bigger egos.”
A16z is one of the primary VCs supporting the project and has become the most frequently mentioned name. Following this Story Protocol drama, many have unfavorable views of such VCs.
“Crypto VCs like a16z or Paradigm aren’t backing builders. They’re funding a lot of fucking grifters and dressing up shallow gimmicks as ‘innovation’. Their game isn’t conviction, it’s capital deployment,” an X user commented.
On the other hand, some have defended A16z:
“A16z hasn’t even started kingmaking $IP, they’ve backed this team 5 times now, making it their most invested crypto project ever, and you’re bearish anon?” another X user shared.
What’s Next for the IP Token?
Despite this major drama, the price of the IP token has shown little significant fluctuation. IP has dropped by less than 2% in the last 24 hours, according to BeInCrypto data. Even with the community buzzing about the founder’s drama, the market seems to retain confidence in Story Protocol’s long-term potential.
Story (IP) price. Source: BeInCrypto
From the community’s perspective, reactions to Jason Zhao’s departure are quite polarized. Some worry that losing a founding member will impact the project’s development direction, while others believe Story Protocol has moved beyond relying on any single individual.
In reality, cases of founders leaving projects post-TGE are not uncommon, and many precedents have seen token prices drop sharply, even losing most of their value.
