NFT Platform ImmutableX’s $66M Unlocking Looms, Putting Sell Pressure on IMX Token

ImmutableX, a platform for non-fungible tokens, is set to release $66 million worth of IMX tokens in an unlocking event that will enable early private investors to sell some of their holdings and potentially tank the token’s price.

A total of 110 million IMX, representing more than 5% of the token’s total supply, will be freed from vesting, an ImmutableX spokesperson told CoinDesk.

Vesting stands for a period when investors in a company’s stock or a crypto project’s token cannot sell their assets. As the vesting period expires, the investors are allowed to relinquish their holdings, applying selling pressure to the asset’s price.

The unlocking is scheduled for Saturday, Nov. 5 at 13:00 UTC, according to the firm.

IMX recently has been trading at 60 cents, meaning these private investors may book a 500% profit on their early investment if they decide to sell.

“We see no concerns surrounding this upcoming unlock, and even if some short-term selling should occur,” Robbie Ferguson, co-founder of Immutable, wrote in an email. “The top 30 IMX holders, representing 85% of the remaining tokens, have committed to holding – many of whom are long-term equity shareholders of Immutable. For remaining IMX private sale holders that do wish to sell, new investors, including Coinbase and Kenetic Capital, have been lined up to absorb any sell pressure.”

TokenUnlocks, a website that tracks crypto token unlockings, sports slightly different data. According to the site, 255 million IMX tokens – more than 12% of the total supply of the token – will be freed from vesting on Nov 5. Some 120 million tokens belong to private investors. The other 135 million are dedicated to project development, which ImmutableX already committed to relocking for at least another year, the spokesperson said.

Recently, crypto gaming project Axie Infinity endured a massive unlocking event, releasing $215 million of AXS tokens in late October. AXS’ price dropped 24% through the week in anticipation of the unlocking. Then, when Axie started to release the tokens, a short squeeze suddenly pushed the price up 7%, liquidating $1.6 million in short positions.

IMX was recently trading at 60 cents, up 4% in the last 24 hours and 93% down from its record-high price in November 2021, according to CoinGecko.

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