ImmutableX(IMX), a layer 2 scaling solution for NFTs on the Ethereum network that offers near-instant transactions and zero gas fees, announced on Feb. 3rd,a partnership with video game retail giant GameStop(GME). The objective of this partnership is to launch an NFT marketplace later this year and this news sent $IMX up by 54%. The partnership also established a $100M fund IN IMX TOKENS as grants to game developers and NFT creators interested in building on ImmutableX and the marketplace.
Almost immediately following the announcement, data from Etherscan showing GameStop selling just under 15M IMX coins worth $47M spurred rumours of a dump or rag-pull by IMX investors sending $IMX down 23% only 24 hours after the announcement. Talk of GameStop turning on retail investors despite being saved by them went viral on twitter. A quick google or duckduckgo could have easily corrected this misinformation.A quick analysis could have made one understand that both IMX and GME are undertaking a large, capital-intensive investment,one requiring cash in order to employ large full-time teams for marketing, sales,tech and whatever else is required to ensure that the venture is a success. Also, the most effective way to make the grants available to developers and creators is to liquidate the coins. GameStop still holds nearly 22.5 million IMX tokens valued at $65.9 million and according to the document that GameStop filed with the United States Securities and Exchange Commission,Immutable has agreed to grant GameStop with more than 56 million IMX tokens to be released based on various milestones as GameStop announces and eventually launches the NFT Marketplace. I will say that GameStop is expected to report earnings on 22nd March,2022 so the timing of the partnership is quite strategic. However,GameStop posting good earnings is highly beneficial for everyone involved in the partnership and increases the chances of it being successful. This entire fiasco,at least to me,points to a persistent problem within the crypto community. Despite it being a well-known fact that crypto trading/investing is volatile, members of our community continue to display hyper-emotional behaviour and this coupled with an over-reliance on unverified information tweeted by their favourite twitter influencer is proving detrimental to the sector as a whole. It's embarrassing how sometimes, all it takes is one tweet to disrupt the entire market. It’s also amusing to note that for a community with a fervent distrust of mainstream media,they’re still easily manipulated by their clear anti-crypto bias in reporting. FUD (Fear, Uncertainty, Doubt) and putting hopes into a single asset are seen as rookie mistakes when in actuality HODLers who’ve been previously scammed,rug-pulled and dumped on don’t learn anything from their mistakes and instead double down on their behaviour,leaving them afraid and open to more scams. It is critical to do your own research, not just on the coin but on its underlying technology as well. Do not obsess over market charts. The dramatic fluctuation of prices is exactly what is attractive about the crypto market but the only thing that market watching leads to is either panic selling or buying high (as a result of FOMO). Keep a level head. We’re early. WAGMI.
