The US Securities and Exchange Commission (SEC) has filed a Wells Notice to Immutable over its sales of IMX tokens. The SEC’s contention is expounded to a 2021 blog post on the pre-launch investment made within the IMX tokens priced at $0.10 or a $10 pre-100:1 split.
Immutable has questioned the SEC’s judgment, saying that the worth was inaccurate; thus, the charge is “incorrect” since no exchange happened between parties.
Immutable (IMX) was certainly one of the favored gaming-focused projects in 2021, a time of the growing popularity of play-to-earn (P2E) blockchain projects. The blockchain project featured an NFT marketplace and an L2 scaling solution, primarily serving third-party game developers.
Immutable has received a Wells notice from the SEC, the newest of their de facto policy of regulation by enforcement. We received this inside hours of our first ever conversation, on a timeline clearly accelerated to land before an election.
Sadly, stories like this have gotten…
— Immutable (@Immutable) October 31, 2024
Wells Notice Targets ‘Sale Of IMX Tokens’
Immutable is a number one Australian blockchain that launched a $320 million pre-sale. Around 14% of the IMX tokens went to the general public. SEC believes that the identical IMX tokens during its launch violated some laws, hence the choice to file the notice.
Within the US, corporations and individuals may receive a Wells Notice from the agency in the event that they are investigated for possible violations. Immutable immediately responded to the notice, saying that the agency was deliberately harsh on start-ups despite little evidence of wrongdoing.
Upon issuance of the notice, the agency contacted the corporate for a conversation. With a Wells notice filed, Immutable may face a lawsuit soon.
Token Price Dips To One-Month Low
The recent news on Immutable and the potential investigation spooked many traders, pushing the token’s price to $1.22 from $1.37, a one-month low. Nonetheless, the SEC issuance was also helpful for the corporate as the quantity of its open interest increased. For Immutable, the open interest covers coin-margined and stablecoin-margined contracts in USD.
Source: Coinalyze
Recently, IMX’s open interest went from a low of $22 million to a high of $27 million in only just a few hours. While many consider IMX dangerous, analysts see a possible and quick recovery from its lows. Top exchanges, including Coinbase and Binance, carry IMX.
IMX price down within the last 24 hours. Source: CoinMarketCap
Immutable Slams SEC For Its Aggressive Enforcement
Australia’s Immutable shared its frustrations over Twitter/X, saying that these notices and investigations have gotten less surprising. The corporate used the experiences of other blockchain corporations like Coinbase, OpenSea, and Uniswap as examples. Immutable added that the agency’s recent aggressive moves now extend to gaming.
In the identical post, the corporate reiterated its commitment to the industry and said it might proceed constructing to support gaming. If needed, the corporate may also fight and defend gamers’ rights. Thus far, the SEC’s Wells notices haven’t led to company or project delistings, aside from XRP, which was faraway from Binance for one 12 months.
Featured image from TechCrunch, chart from TradingView