The US Securities and Exchange Commission (SEC) has given good notice to Immutable regarding its sales of IMX tokens. The SEC dispute is related to a 2021 blog post about a pre-launch investment made in IMX tokens at $0.10 or a $10 pre-split of 100:1.
Unchangeable questioned the SEC’s ruling, saying the price was inaccurate. Therefore, the accusation is “incorrect” as no exchange took place between the two parties.
Immutable (IMX) was one of the popular gaming-focused projects in 2021, a time of growing popularity for play-to-earn (P2E) blockchain projects. The blockchain project features an NFT marketplace and an L2 scaling solution, which mainly serves third-party game developers.
Immutable has received a Wells Notice from the SEC, the latest in its actual policy of regulation through enforcement. We received this within hours of our first-ever conversation, on a timeline that was clearly accelerated before the election.
Unfortunately, stories like this have become…
– immutable (@immutable) October 31, 2024
Wales notice targets ‘sale of IMX tokens’
Immutable is one of the leading Australian blockchain networks that has launched a $320 million pre-sale. About 14% of IMX tokens have been offered to the public. The SEC believes that the same IMX tokens during their launch violated some laws, hence the decision to file the notice.
In the United States, companies and individuals may obtain… Wales Notice From the agency if they are investigated for potential violations. Immutable immediately responded to the notice, saying the agency was intentionally harsh on startups despite little evidence of wrongdoing.
When the notice was issued, the agency contacted the company for a conversation. With Wales filing notice, Immutable may soon face a lawsuit.
The price of the token fell to a one-month low
The recent news about Immutable and a potential investigation spooked many traders, pushing the token’s price to $1.22 from $1.37, a one-month low. However, the SEC’s issuance was also beneficial to the company given the size of its bonds Open interest increased. For non-fungible currencies, open interest covers coin-margined contracts and USD stablecoin-margined contracts.
Source: Coinalyze
Recently, IMX’s open interest rose from $22 million to $27 million in just a few hours. While many consider IMX to be risky, analysts see a potential and quick recovery from the lows. The best exchanges, including Coinbase and Binance, carry IMX.
IMX price down in the last 24 hours. Source: CoinMarketCap
Unchangeable criticizes the SEC for its strict enforcement
Australian company Immutable shared its frustrations with Twitter/X, saying these notices and investigations were becoming less surprising. The company used the experiences of other blockchain companies such as Coinbase, OpenSea, and Uniswap as examples. Unchangeable added that the agency’s recent aggressive moves now extend to the Games.
In the same post, the company reiterated its commitment to the industry and said it would continue to work to support gaming. If necessary, the company will also fight and defend players’ rights. So far, Wells notices issued by the SEC have not led to the delisting of the company or project, with the exception of XRP, which was removed from Binance for one year.
Featured image from TechCrunch, chart from TradingView
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