News - ImmutableX wants to conquer the NFT market - will it succeed?

By Mike Hesp

ImmutableX wants to conquer the NFT market - will it succeed?

Immutable X (IMX)

ImmutableX is a blockchain network that aims to conquer the NFT market with "massive scalability." Can it succeed?

ImmutableX is a scalable solution for NFTs based on Ethereum. In the official whitepaper however, it is claimed that it will surpass Ethereum with instant trades, massive scalability and the absence of gas costs for trading and minting (storing) new NFTs. The project does not spare superlatives: ImmutableX is the world's most technically advanced solution for scalability. Time to take a closer look at the project.

How does ImmutableX plan to become a market leader?

One of the goals of the project is to improve the safety of the NFT trading high and not having to compromise on scalability. In other words, lightning-fast NFT trading with high security measures. To achieve this, the project uses, among other things, the ZK rollup scaling engine.

ZK rollups make it possible to combine a large number of transactions, validate them in their entirety and finally forward them to a layer-1 smart contract. In this way, the project says it manages to chase 9,000 NFT transactions, trades and mints across the blockchain every second.

To simplify the processing of requests to the network, ImmutableX wraps the ZK rollups in API Abstraction Layers. These programming interfaces enable a connection between the blockchain and the outside world that saves going through smart contracts. In this way, the project aims to shorten work paths and computing power.

Connection to the outside world

The ImmutableX team also came up with something for interoperability with other cryptocurrency systems. For example, one can connect to the network through any Ethereum NFT wallet without having to change the app.

For the programmer side, the project also provides associated software development kits (SDKs) that further simplify interaction with the protocol. In this way, the project aims to open up to all major programming languages and all major platforms.

In short, ImmutableX makes every effort to be the best possible intermediary for the NFT world.

Liquidity, marketplace and compliance

To generate the greatest possible liquidity for trading NFT, the project is refocusing on interoperability. The goal is to provide an order book that functions on all platforms. In other words, you can create an order on one NFT marketplace and have it executed on another marketplace.

In addition, ImmutableX provides a compliance platform on which potential NFT providers can have the legal work taken out of their hands. Potential ImmutableX partners can fully focus on the difficult work of creating NFTs and do not have to deal with tedious regulatory issues.

Wat is the role of the IMX token?

IMX is an ERC 20 token. This means it uses Ethereum's technological infrastructure to perform its own functions. Given everything we know about the project so far, this makes sense.

In the ImmutableX universe, the cryptocurrency assumes the classic role of utility token. Without it, nothing works. For example, at least 20 percent of all network charges must be paid in the form of IMX. But this can also be done with other cryptocurrencies; ImmutableX then takes care of the conversion into IMX.

Further, the tokens can be used to enhance the proof-of-stake consensus mechanism of the protocol to support. Those who deposit them into the Strike Rewards Pool get rewards paid out in the form of IMX. The more tokens you deposit into the network, the more rewards you get for your money.

Token distribution and price development

Looking at the token distribution, it is immediately noticeable that more than 75 percent of the tokens are held back for the further development of the project and ecosystem. On the one hand, this is a good signal for the project itself. On the other hand, it also means that only a very small portion, 5.42 percent of the total stock, has been sold in public sales. 13.86 percent has already been issued in a private sale. Which can also be credited to the project: Only four percent is being held back for the Foundation itself.

Since its launch on Jan. 20, 2022, IMX's price has done well. Shortly after launch, it reached its all-time high of $3.39 on Feb. 3, 2022. After that, it went downhill, which may also have been due to the general market environment. In the last few months, it went creeping sideways, moving in a range around $0.50.

Is ImmutableX the ultimate middleman?

In fact, the project seems to have thought of everything. A general NFT order book, wallet bridges and ZK rollups. The company presents itself as the ultimate intermediary. Critics may ask: where is the decentralization? After all, it is a core point of many crypto projects to have no middleman. But, as ImmutableX impressively presents, there could still be a market for decentralized central players.

Especially in Asia, the project has been favored in the past, leading to a brief strong pump of the project only in September. Should the general market environment stabilize and the NFT market also regain strength, at this point you cannot rule out that ImmutableX will (again) gain strength as well. Until then, it is a case of: Wait and see.

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