Immutable X (IMX) is the native token of an NFT (non-fungible token) marketplace that operates as a layer 2 network tool for the Ethereum blockchain. It uses zero-knowledge proof technology to offer low fees, high speeds and scalability – the ability to process more transactions without slowing down.

The Immutable X token started trading in late 2021 following an initial exchange offering (IEO) on the Huobi Global exchange, two initial coin offerings and private sales. IMX has a maximum, fixed supply of 2 billion tokens.

Tokens sold for 16 cents on Huobi at the beginning, and then shot up to about $3 shortly after that. The price kept rising for about a month, peaking at $9.50 with a market cap of $1.75 billion in November 2021. Then came a crash, and IMX spent the next six months trading at about $1.50 to $5.

Its token sales, which sold off just under 20% of the supply, were a big success. In September 2021, an ICO on CoinList raised $12.5 million in less than an hour. And in a Series B funding round, Immutable raised $60 million from top venture capital and trading firms like Alameda Research, Galaxy Interactive and Bitkraft.

While most tokens were released shortly after the launch, the tokens from the private sale were scheduled to be unlocked over 18 months following a one-year cliff. Immutable X has earmarked the rest of the supply to jump-start the network, reward loyal users and develop the protocol.

Immutable X relies on what are known as “zero-knowledge rollups” (“ZK rollups”). This is an Ethereum-scaling tool that “rolls up” batches of transactions and then processes them on a separate blockchain known as a layer 2 before feeding them back to the Ethereum blockchain as a single transaction. Rollups cut down on transaction fees and speed things up while allowing a network to benefit from the security and network effects provided by the main Ethereum blockchain.

Immutable X uses ZK rollups to power an NFT platform that doesn’t charge its users gas fees. It powers popular NFT games like Gods Unchained, Illuvium and Nike (NKE)-owned sneaker NFT project, RTFKT. IMX is the utility token of this marketplace. It is used to pay for transaction fees, although buyers don't need to hold IMX, as the platform will automatically convert 20% of the sale into the currency.

IMX is used for governance proposals that determine the future of Immutable X. One IMX token is the equivalent of one vote. The team behind Immutable X plans to extend greater control to governance token holders over time. The token is also used for staking. All fees paid in IMX go toward a staking reward pool; those who stake IMX are entitled to shares in the pool. IMX is also issued to people who trade on Immutable X.

Immutable X was built by the tech firm StarkWare and Immutable. In February 2022, GameStop (GME) joined with Immutable X, to establish a $100 million NFT fund in IMX tokens.

Immutable was founded by two brothers and Forbes “30 under 30” entrepreneurs, James and Robbie Ferguson. Robbie Ferguson is a Thiel fellow.

As of May 2022, Immutable has raised $280 million, according to data from Crunchbase. A March 2022 funding round led by Temasek Holdings raised $200 million.