Founder Jason Zhao leaves Story Protocol after 3.5 years of doing nothing, leaving investors outraged

https://www.linkedin.com/posts/jasonjinzhao_after-35-years-building-story-from-scratch-activity-7362344084398579712-AXDQ

Story Protocol, a pioneering Layer 1 (L1) blockchain platform leveraging AI to transform intellectual property (IP) management, recently announced a significant leadership transition. Co-founder Jason Zhao is stepping back from his full-time role after 3.5 years to launch another project. This development, set against the backdrop of Story Protocol’s $134–$140 million in funding from prominent investors like Andreessen Horowitz, Endeavor, and Samsung Ventures, underscores the need for vigilance when investing in emerging L1 projects, even those backed by high-profile venture capitalists (VCs).

This case exemplifies the inherent risks associated with emerging Layer 1 blockchain projects. Leadership transitions, particularly following significant funding rounds, can generate uncertainty regarding a project’s stability and capacity to achieve its objectives. Even with support from prominent venture capital firms, success is not assured.

Such instances of maximum extractions by founders are increasingly prevalent in the industry. Investors are strongly advised to exercise caution and conduct thorough due diligence before committing to new projects.