Immutable’s IMX Token Plummets Amid Regulatory Scrutiny
IMX Token – The price of Immutable’s IMX token on Ethereum experienced a sharp decline late Thursday after the company revealed that it received a letter from the U.S. Securities and Exchange Commission (SEC), indicating potential enforcement action ahead. As reported by CoinGecko, IMX dropped 14% on the day, with its price falling from approximately $1.29 to $1.19 in less than two hours following the announcement of the Wells notice.
SEC’s Warning and Immutable’s Response
Immutable disclosed that the SEC’s letter warns of an impending lawsuit related to a 2021 sale of IMX tokens, which the agency alleges constitutes the sale of unregistered securities. In response, an Immutable spokesperson stated, “Despite the SEC indiscriminately claiming that tokens across the industry are securities, we are confident the IMX token is not. The notice simply cited statutory provisions and contained limited meaningful detail.”
SEC’s Silence on Investigation
When approached by Decrypt for clarification, the SEC declined to provide specifics, stating it “does not comment on the existence or nonexistence of a possible investigation.” This lack of transparency has left the industry on edge as similar cases unfold.
Immutable’s Gaming Ecosystem
The Immutable gaming platform operates across two Ethereum scaling networks—Immutable X and Immutable zkEVM—hosting hundreds of game projects at various stages of development. Notable titles developed by Immutable include Gods Unchained and Guild of Guardians, with other prominent games on the platform such as Illuvium, Ember Sword, and Cross the Ages. Immutable characterized the SEC’s action as an “overreach,” a sentiment shared by other firms like Coinbase, OpenSea, Crypto.com, and Uniswap Labs, which have faced similar regulatory scrutiny.
Market Trends and Token Performance
Earlier this spring, the IMX token had surged in value amidst a broader upswing in the crypto gaming sector, reaching a peak of about $3.64—the highest price since January 2022. However, IMX has since plunged 68%, reflecting the steep declines seen across other major crypto gaming tokens. Additionally, it remains down a staggering 88% from its all-time high of $9.52 reached in 2021.
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