Coinbase is set to terminate its IP-PERP perpetual futures and associated contracts on July 6. This decision aligns with a significant identity transformation for the project that previously operated under the name Story Protocol. On June 25, the project underwent a rebranding to the Data Network, which entails a complete migration of tokens—a change where each $IP token will convert to one $DATA token, maintaining a 1:1 ratio.
The initial aim of Story Protocol was ambitious. It sought to create a Layer 1 blockchain enabling creators to register, license, and monetize intellectual property assets on-chain. However, the rebranded Data Network pivots this vision towards providing high-quality AI training data, addressing the increasing scarcity of such data necessary for enhancing AI models.
The token had experienced a dramatic decline, losing about 98% of its value prior to the rebranding announcement. With the upcoming suspension on July 6, traders now have approximately ten days to either close their positions or adapt as Coinbase prepares to accommodate the token migration.
#What Does the Suspension Mean for Traders?
Coinbase had listed the IP-PERP on its International Exchange and had earlier converted these contracts into a perpetual format in February. It's crucial to note that this suspension is not a punitive delisting but a temporary measure to facilitate the token migration, allowing for a relisting under the new $DATA ticker.
Both Kraken and Bybit have expressed support for the transition from $IP to $DATA, with Bybit explicitly stating its backing for the token swap. The 1:1 ratio streamlines the process for token holders, ensuring simplicity in the conversion without involving any complicated dilution calculations.
#What Should Investors Monitor?
Observing a value decline of 98% before a rebranding indicates a significant dissipation of the underlying value proposition for early supporters of Story Protocol. For traders dealing in derivatives, the immediate concern is how to position themselves before the July 6 deadline. Although open interest in IP-PERP was not among the largest markets on Coinbase International, it is essential for holders to make informed decisions regarding their positions, or clarify how Coinbase will manage contract settlements during the suspension phase.