Immutable X: Is it a good investment?

The crypto space has experienced growing interest and numerous rapid changes as knowledge about its use cases and investment potential grows. Among the frequently asked questions is whether Immutable X (IMX) is a good investment in 2023 and beyond.

This article is an all-inclusive guide offering fundamental information so you can decide whether it's a good project.

What is Immutable X?

Immutable X is a layer-2 blockchain scaling solution designed to facilitate a seamless deployment of NFT minting and GameFi applications on the Ethereum blockchain.

The project's native currency (IMX) is an ERC-20 utility token specifically built to facilitate rewarding the network's activities, including liquidity provision, trading, and creating applications.

The founders are brothers James and Robbie Ferguson, and the project is backed by leading venture capitalists Nirvana Capital, Coinbase, and Galaxy Digital, among others. 

What challenges does the project try to address?

The project aims to alleviate several pain points in the crypto space. The platform has an easy-to-use interface that specifically reduces confusion and investor onboarding so even the less tech-savvy users can enjoy its offerings.

Among the challenges Immutable addresses include the following: 

Developer restrictions: The network’s flexible architecture enables users to develop and customize decentralized applications, blockchain games, etc. Users can use the system to easily set up factors like trading fees or bulk minting to facilitate easier NFT minting. There are also various easy-to-use developer tools that have simplified programming and Dapp creation.   

Lack of sustainability: The problem with pioneer cryptocurrencies like Bitcoin that utilize the Proof of Work (PoW) consensus mechanism is their requirement for all nodes to accomplish the energy-heavy computations. The Immutable protocol plans to develop a green decentralized ecosystem to offset its carbon footprint as it plans to become a completely carbon-neutral platform.   

How it works

Immutable X uses the Zero-Knowledge Rollup (ZK-Rollup), a scaling technology that approves transactions in volumes in batches of 100 transactions at a time.

Once they're combined, the batch will then be verified via a smart contract. This results in the platform using less data for every transaction while the approvals and verifications happen really fast. Moreover, Immutable can facilitate at least 9,000 transactions per second, making it carbon neutral as it reduces energy consumption and gas fees.

Immutable X unique features

As the pioneer layer-2 scaling solution specifically designed for the Ethereum NFT marketplaces, Immutable X mitigates Ethereum's poor scalability, illiquidity, and confusing user experience.

Among its unique features are:

API abstraction layer: Immutable X has an API abstraction layer that wraps around the scaling engine and facilitates smart contract development. This feature is ideal for new entrants wishing to establish themselves to launch new projects.  

Layer-2 scaling solution: Developers enjoy near-zero gas fees, fast transaction speeds, and high-level security.  

NFT-enabled wallets: The platform supports Ethereum-based wallets; users don’t have to switch from one NFT marketplace to another. By providing an intermediate IMX Link layer, Immutable enables users to benefit from a wallet experience around different NFT projects without security risks. 

Zero gas fees: Hardly any gas fees are payable for performing transactions in the Immutable X platform, while at least 20% of protocol fees are paid using IMX tokens. However, users can choose between the IMX token and any other compatible currency compatible with the system.  

Staking: Users can stake using IMX tokens via a fee-capture mechanism sent monthly to a pool where it’s distributed to all active stakes. How much a user receives depends upon how much money one has staked.  

How to invest 

While all kinds of digital currency investments come with a degree of risk, especially due to their volatility, there are still chances of making money if you comprehend the perils and learn a few investment strategies.

Buy IMX through an exchange: Sign up for an account at a reputable crypto exchange that supports IMX. You can buy funds in your account once you’re through with the KYC processes.

Buy fractions of IMX tokens: IMX is divisible into several decimals, meaning an investor can buy small fractions worth cents. Most platforms require purchasing a minimum amount of $10 – you can start building your portfolio from there and enhance it as you gain confidence. 

Trade IMX through a broker: You can still select a broker to make trades on your behalf if you're unwilling to store the tokens in your wallet for whatever reason.

Invest in IMX exchange-traded funds (ETF): You may also invest in IMX ETF. This trading instrument tracks select assets – ETFs are created and controlled by selecting a basket of crypto coins to spread risk across the investor's portfolio, especially those that have performed well.

Is Immutable X a good investment?

It's difficult to answer this question with a straight yes or no, but this project's imminent potential and relevance show it can be a sound investment option.

The price projections and graphs for the token will keep fluctuating, similar to all other cryptocurrencies, meaning you need to do your research and take a little time to study technical and external variables before making a final purchase choice.