In 2021, traders experienced a huge increase in the Ethereum network’s usage. Every day, more people began using the blockchain and the network could not handle the load. High use caused an increase in fees, as those who paid more fees were able to process their transactions quickly, which resulted in situations where a $100 transaction could have up to $50 in fees. Many projects looked for ways to solve the problem. Immutable X (IMX) hopes to solve it by creating a layer-2 solution for Ethereum. Specifically, it is looking to reduce high fees in the Ethereum non-fungible token (NFT) space.
What is Immutable X (IMX)?
A layer-2 network like Immutable X attempts to draw workload away from the base layer, typically the Ethereum mainnet. Layer 2s help reduce the load on the main network, which in turn lowers fees and increases throughput. In the case of Ethereum, its founder Vitalik Buterin believes that Ethereum will be “all-in” on layer 2 in the near future.
Since Ethereum’s network is so robust, it would require a lot of resources to become a layer-2 solution for the entire network. Immutable X solves this problem by offering layer 2 exclusively for NFTs. This way, it can create a better user experience in the NFT space without having to dole out the resources to become a layer 2 for all Ethereum transactions.
To process transactions, Immutable X sends Ethereum using the base layer while using its own second layer to send NFTs. This process allows it to capitalize on the security of Ethereum without having to require gas fees on all transactions and to have an extremely high throughput. The founders of Immutable X believe that the project could be scaled up to process more than 9,000 transactions per second (TPS).
Another major benefit of Immutable X is its minting capabilities. When minting an NFT, users typically have to pay gas fees to create it on the blockchain and then send it to the owner. Some NFT projects can have more than 20,000 NFTs, so costs can add up quickly. Immutable X does not have gas fees, so it is much more cost-effective for NFTs to be minted on Immutable X. The founders of the project believe that this feature will be a major selling point for new users.
Brief History of Immutable X (IMX)
Immutable X was founded by brothers James and Robbie Ferguson, both members of the Forbes 30 under 30 list for success in previous ventures. The team consists of over 100 employees, with backgrounds ranging from Wall Street to Silicon Valley. In the initial funding round, the project raised over $15 million from Coinbase Ventures, as well as several other venture capital firms.
The token, IMX, was released in November 2021. It quickly hit a high of nearly $10 before falling to its current price level of around $3.50 and a market capitalization of around $700 million.
How to Buy Immutable X (IMX).
Now that you have a rudimentary understanding of Immutable X, you may be interested in purchasing the token. Fortunately, it is readily available on multiple prominent exchanges, including Coinbase.
Best For
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
- Open an online account.
The first step to purchasing IMX is to open an online account on a supported trading platform. While a variety of crypto brokerages offer the token, 2 in particular stand out due to their low fees, security and ease of use. Coinbase Global Inc. (NASDAQ: COIN) and FTX are both great trading platforms that offer IMX.
To open an account on either platform, head over to the app or website and create an account using an email and password. You may then have to verify your account using basic personal information. Once you have a verified account, you can fund it by connecting your bank account.
- Buy a crypto wallet (optional).
While storing your IMX on Coinbase or FTX is the easiest, it may not be the safest because the exchanges have full custody of your funds. If they were to be hacked, they could lose your money. Wallets allow users to have full discretion over their funds and can be safer than storing on an exchange.
- Make your purchase.
With your funded and verified Coinbase or FTX account, search for IMX. Enter in the amount you would like to purchase and execute the trade. From there, your IMX can be found in your portfolio.
Best Cryptocurrency Wallets for IMX Token
Best Hardware Wallet: Ledger
Hardware wallets are physical devices that store the private codes needed to send crypto. The physical device is not present to confirm transactions, then crypto cannot be sent.
Ledger is a leading brand of hardware wallet known for its safety and usability. It currently offers Nano S and Nano X models. The Nano S offers basic features while the Nano X is designed for easier use with bluetooth connectivity and a larger screen.
securely through Ledger Hardware Wallet’s
website
Best For
- ERC-20 tokens
- All experience levels
- Easy to set up and use
- Supports more than 1,500 different digital assets
- Tamper proof
- Portable
- Long-lasting battery
- Bluetooth connectivity features
Best Software Wallet: Coinbase Wallet
Software wallets store private codes online instead of on a physical device. While not as safe, they can provide more mobility and are often free.
Coinbase Wallet is a free software wallet that supports IMX. The software wallet is known for its usability and clean interface.
Bonus Section:
Keep an eye on the number of users IMX has. This factor will likely be an indicator of where the price may go.
Trade, Sell or Convert your Immutable X (IMX)
To sell your position, navigate back to IMX using the search feature. Enter in the amount you would like to sell and execute the trade. You can then find your fiat currency in your portfolio, which can either be kept on the exchange or deposited back into your bank.
You can access two ways to convert your IMX to another cryptocurrency. The first is to sell it for fiat and then use that fiat to buy another token. The other option involves a wallet. You can send your IMX to a wallet, and then take that wallet to a decentralized exchange (DEX), such as SushiSwap. You can then directly convert your tokens for others.
Current Crypto Prices
So far, 2022 has not been kind to the crypto markets. Some major tokens have lost over half of their value and continue to decline. A portion of analysts see this as a small correction in the grand scheme of things while others predict that the trend is the beginning of something much worse.
To keep track of current crypto prices, make sure to check out Benzinga’s up-to-date price table.
Is Immutable X (IMX) a Good Investment?
Immutable X is still a very new project and has not yet gained loads of attention. The project can go two ways: it can fizz out and decline in price or gain steam and appreciate in value. It is impossible to know which way it will go. However, the ideas behind it are solid. The only question is execution. If IMX can execute on its large plans, then there is certainly room for growth.
