most porfitable altcoin immutable x

Buy the dip. That’s what we say in many of our videos about projects we like. What if you knew when a dip was coming? How would you prepare for it? Would you buy a little or a lot? Or would you try to shorten it first?

Well, one such event is happening this week and you have a chance to prepare in advance. What is it? How can you make money from it? Stay tuned and find out more about Immutable X.

Update #1: Developer Fund

Our Project Focus today is Immutable X. One of the best signs of projects that will grow when the bull returns are to look for projects building and making investments now. So, Immutable X is doing that. Although announced in June, this is an important development worth mentioning again.

Their $500 million developer and venture fund have the sole purpose of advancing Web3 games on Immutable X. This project already is the fastest Layer 2 rollup for Ethereum. And it was the first rollup specifically for NFTs. So, this developer fund and the need for games to have fast, cheap solutions are both helping Immutable X grow. Also, their NFT marketplace partnership with Gamestop just launched this week, too.

Do you have a favorite blockchain game right now? Let us know in the comments below.

Update #2: The Big Immutable X Token Release

We did a deep dive on Immutable X a few months ago. And if you want to know about The Team and more on the value prop of being a Layer 2 for games and NFTs. But now that you’ve had your appetizer, it’s time for the main course.

And the main course for Immutable X and why we are talking about it now is the HUGE token release coming on Friday. So what exactly is going on? On Friday, 254 million tokens will unlock. It’s part of Immutable X that all payments and rewards have a lockup period. This 254 million is 12.7% of the total supply. That’s a lot of tokens. It’s even more when you look at it in this context.

1) Token Release By the Numbers
  • Total supply: 2 billion IMX tokens
  • % of Tokens Locked as of Today: 74% or just under 1.5 million IMX
  • % of Unlocked Tokens as of Today: 26% or 510 million

So when you look at these numbers, what’s really happening is:

  • The number of unlocked tokens circulating increases by 50% from 510 million to 764 million. That’s when we add the 254 million releasing this week
  • The # of locked tokens is still more than 50%. It’s 74% today and will be 62% after Friday.

We talk about this on the channel often. An important part of tokenomics is emission schedules, lockups, and vesting periods. And this is why. But stay tuned and we’ll have more on what to do and how to position yourself for this event.

2) Where Are the Tokens Coming From?

One of the next logical questions is where are these tokens coming from? Is it a VC/insider dump? Is it the first time the public has a chance to sell? You can see that the tokens divide into 5 categories:

  1. Ecosystem Development 51%
  2. Project Development 25%
  3. Private Sales 14%
  4. Public Sales 5%
  5. And Foundation Reserve 4%

The 2 biggest categories by far are the first 2, Ecosystem and Project. Together, they control 76% of the tokens. On the unlock schedule, all the tokens come from 2 areas. Those are Project Development and Private Sales. Also, project development will release 134 million tokens.

Then, private Sales will release the remaining 120 million tokens. IMX, the native token of Immutable X, is currently trading at 62c.

Project Development is web developers helping to build out IMX and others involved with the IMX token or the NFT Marketplace will have their first chance to sell. Today, right now as I’m talking to you, they are not vested. On Friday, $76 million worth of their tokens now vested. Now we have no idea if these developers:

  • Bought or staked these tokens
  • Got them as a gift
  • Got them as payment for work they’ve been doing.

So we have no idea if they are in the money on them or not. But if their cost was 0, they certainly are. How many of those do you think will sell? The Private Sale numbers are even worse despite being fewer tokens. They jump from 6 million IMX vested now to 126 million or $72 million. And that private sale went for 10c per IMX. So let’s do the math.

Current Price: 62 cents

Cost Basis (price where bought): 10 cents

Profit: 52 cents

Profit %: 420%

Now, how many of THOSE do you think will sell? Would you take some money off the table if you had a 470% return? In 18 months. Most of us would.

3) How to Make Money From The IMX Token Release

The term some of us here at Altcoin Buzz like to use, and I know you’ve heard me say it before is the overhang of the supply of tokens. This is exactly what’s going on here. The lack of liquidity has helped pushed the IMX price higher. Now don’t misunderstand. We don’t think ImmutableX is a bad project. In fact, we like it a lot.

But it’s impossible to look at this event and not think that a dump is coming. So how should you play this? If you are bold and you know how to trade with proper money management and stop losses, then you could think about shorting IMX into this token release if your exchange allows it. For most of us, the less risky advice is to:

  1. Understand this is coming (the release and the dip)
  2. Do not add to current positions before the token release
  3. Wait for the token release to happen
  4. If the dump happens that we expect from this huge supply hitting the market, then you will have a long-term buying opportunity if you like IMX long-term. And many of us do. We think it could become a leading L2 blockchain for many years.

So in case you haven’t seen this before, this is what short-term bearish and long-term bullish together look like. It seems a little strange for sure, but if you like IMX and its fundamentals and growth opportunity, then this token release does not change any of that. So, wait for the dip, then buy it. It could get severe.

Last piece of advice. IMX is currently at 62c. Don’t worry about trying to catch it at the bottom. If it drops 15-20% and you like the price there, then buy. Or leg into with buying a little all the way down. That’s how the pros do it.

IMX Price Activity

Our great Technical Analysis team here at Altcoin Buzz tells us that IMX is trading above the support zone of $0.568 and below the trendline resistance. As long as it is above the support zone, we could start seeing a move toward $0.650 and $0.709 which is the key resistance area. If $0.709 gets broken, IMX will break out of the bearish trend and quickly move toward $0.789, $0.915, $1.048, and $1.129.

Failure to hold the support at $0.568 could lead to a drop toward $0.530 and $0.418. These are the next key levels of support.

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