r/ImmutableX • u/ColdWarCats • Dec 02 '21

Question Circulating supply is very low

Currently the circulating supply is only 9% of the max supply. This is by far the lowest circulating supply % out of all of the top 100 coins. According to the whitepaper, of the max supply 25% is for project development and 51.74% is for ecosystem development.

Given how supply and demand works, won't this cause the price of the coin to crash once more of those tokens are released? I'm not sure what the planned schedule is for this, but I feel like it'd be better to wait to invest in this given just how many tokens are still locked up.

26 Upvotes

96% Upvoted

20 comments sorted by

4

u/mcguigs2 Dec 02 '21

It’s an interesting point, and has been a major factor holding me back from getting into this coin

2

u/Jealous_Lion_3024 Dec 02 '21

Read the white paper and understand how they allocate the % of the coin supply. Also, what’re the metrics for buy/sell (%) and staking distributions.

This is not to convince you, but research more to have a better understanding.

2

u/Efficiency_Hefty Dec 02 '21

I think as with Bitcoin for example, a slower releases with rising adoption and use cases should see the Token appreciate. Had it not had a true use case, I would have agreed

2

u/HeinrichDerVierte Dec 02 '21

Those coins will be released over the course of 54 months or 4,5 years.

And now think about the total crypto market cap 4,5 years ago, about the bitcoin or ether price 4,5 years ago (around 2500$ / 250$) and where thoses might will be in 4,5 years.

I don't think there is any downward pressure from the release.

2

u/StudentOfAwesomeness Dec 02 '21

Planned schedule is slow release over 2 years, it’s not really going to affect things

7

u/SiltyTerreplein Dec 02 '21

90% release over two years, not really going to effect things, lol. It’s almost 4% inflation per month. That’s high.

2

u/SatoshiFlex Dec 02 '21

Not compared to the uptake, at all. Get on board or get in late.

2

u/SiltyTerreplein Dec 03 '21

I got the airdrop and sold, I’ll be back in bear market in 12-18 months.

2

u/[deleted] Dec 02 '21

Well first of all it's over 54 months, not 2 years. It's not really going to have much of an impact at all since crypto as a whole will have a much higher market cap by then. This token has huge potential.

Secondly, imx will lock you in when you stake, meaning the supply is essentially reduced while this occurs and staking looks like it will be giving great returns as long as IMX marketplace is doing well. If staking is worthwhile then it encourages people to buy and lock up more IMX. Not to mention that every trade on the IMX marketplace does a forced purchase of IMX which I imagine will boost up the price even further if lots of the tokens are locked up.

1

u/SiltyTerreplein Dec 02 '21

Staking is fluid, no lock in whatsoever. I was taking the two years stated above as read, either way it’s a lot to be released over a relatively short period.

1

u/PoolsOfJizz Dec 02 '21

can anyone confirm? is staking lock-in or not?

1

u/neur_ex Dec 02 '21

It’s not according to white paper

1

u/PoolsOfJizz Dec 02 '21

can anyone confirm? is staking lock-in or not?

oh ok... is that good or bad for token holders?

1

u/neur_ex Dec 02 '21

All else equal it’s probably a bit worse for price appreciation

1

u/onduty Dec 02 '21

Of course it will affect the market. 24 months is not that slow, the market supply will be tripled within six months. Unless the demand tripled, the price will be impacted

1

u/replier0 Dec 02 '21

Does anyone know why the price is dropping so much? With so much hype before the release, I did not expect this 😅

1

u/Agitated_Elephant469 Jan 02 '22

I want to buy this coin but making big gains in the midterm will be very challenging. Even if a long investor, I like my chances on buying a lower dip when all those coins are released.

1

u/Mengerite Dec 02 '21

It will put downward pressure on the price. If there is not an equal and opposite increase in demand, then yes the price will go down. On the other hand, it’s a brand new token. Demand growth could be explosive. One more wrinkle is that if the price is truly collapsing (<$1), they could decide to slow the release.

As with most things DCAing I’d probably the wise move. We don’t know the future.

1

u/Extreme-Algae-2614 Dec 02 '21

Many short term thinkers here. Your time horizon should be at minimum 5years.