The post Story [IP] crashes as user count plunges 88% – What went wrong? appeared on BitcoinEthereumNews.com. Key Takeaways What triggered investor fear and bearish sentiment around Story?  A recent audit revealed smart contract vulnerabilities, prompting concern and a lack of response from Story, deepening anxiety. How have IP’s on-chain activity and liquidity responded to the negative sentiment?  Daily active users, transactions, and TVL have all dropped sharply, with $810,000 in IP sold and DEX volume hitting a monthly low. Story [IP] has witnessed one of the most significant declines in the market over the past day, showing clear signs of weakening sentiment. Reports on the state of the chain have sparked fear among investors across the market, pushing many to turn bearish and bet against its potential recovery. Vulnerabilities spark investor fear A recent audit of Story’s smart contract, conducted by AI security firm BitsLab, revealed two vulnerabilities, one of medium severity and the other of low severity. While these issues are not expected to result in any immediate loss of funds, the report triggered a strong reaction from investors. Many interpreted the findings as a red flag, sparking concern across the market. To make matters worse, Story has yet to issue a response to BitsLab’s audit. This silence has likely intensified investor anxiety at the time of writing. On-chain participation drops According to Artemis, activities on-chain have continued to plummet. Users are beginning to churn, exiting the protocol in growing numbers. Daily active users in the market have fallen to a new low of 1,600, one of the lowest points in the past three months, compared to over 13,000 active users previously, nearly an 88% drop. Source: Artemis Transactions have also moved sideways as user activity declines. The latest readings show about 303,000 transactions, significantly lower than previous levels facilitated on the protocol. When sentiment shifts like this, demand for IP drops, reducing its use… The post Story [IP] crashes as user count plunges 88% – What went wrong? appeared on BitcoinEthereumNews.com. Key Takeaways What triggered investor fear and bearish sentiment around Story?  A recent audit revealed smart contract vulnerabilities, prompting concern and a lack of response from Story, deepening anxiety. How have IP’s on-chain activity and liquidity responded to the negative sentiment?  Daily active users, transactions, and TVL have all dropped sharply, with $810,000 in IP sold and DEX volume hitting a monthly low. Story [IP] has witnessed one of the most significant declines in the market over the past day, showing clear signs of weakening sentiment. Reports on the state of the chain have sparked fear among investors across the market, pushing many to turn bearish and bet against its potential recovery. Vulnerabilities spark investor fear A recent audit of Story’s smart contract, conducted by AI security firm BitsLab, revealed two vulnerabilities, one of medium severity and the other of low severity. While these issues are not expected to result in any immediate loss of funds, the report triggered a strong reaction from investors. Many interpreted the findings as a red flag, sparking concern across the market. To make matters worse, Story has yet to issue a response to BitsLab’s audit. This silence has likely intensified investor anxiety at the time of writing. On-chain participation drops According to Artemis, activities on-chain have continued to plummet. Users are beginning to churn, exiting the protocol in growing numbers. Daily active users in the market have fallen to a new low of 1,600, one of the lowest points in the past three months, compared to over 13,000 active users previously, nearly an 88% drop. Source: Artemis Transactions have also moved sideways as user activity declines. The latest readings show about 303,000 transactions, significantly lower than previous levels facilitated on the protocol. When sentiment shifts like this, demand for IP drops, reducing its use…