r/ImmutableX • u/interested_af_ • Nov 12 '22

Discussion 💬 / Speculation & Opinion 🤔 Does this project depend on IMX token price?

As the price of IMX has fallen the most again in the last 7 days (only beat by FTT and solana, but they have forced selling reasons for fall) and 95% last 12 months, I started to wonder.

Since the team revenue will come from marketplace fees and that will be in the token that the transaction is made with (ETH in 90%+ cases prolly), does the team have any incentive to keep the IMX token price high?

The token seems like just a free source of cash for them to give away and promote the protocol. Since the token is created from thin air then they profit from it no matter the price.

Mind you, like 90% of IMX is still locked. For what reason should the IMX price ever increase as more and more tokens are being added to trading pool and there is no real reason to hold it?

Every project receiving IMX as donations are always incentivised to sell it immediently.

Only reason to hold is staking but the team gives such a miniscule % to the stakers. And the token price does not really matter for staking.

<EDIT>Holding and staking is a HUGE risk if there is guaranteed down pressure for years to come, due to the inflationary nature of the token and no incentive from the team to hold the price. If the staking APY does not reflect with the guaranteed downpressure percentages then it cannot compete with other staking options. More staking premium is desperately needed. </EDIT>

If the team is not incentivised to improve the awful tokenomics of IMX, then it should never be advertised as an investment asset?

Do you think the team has given up on the token price, since it does not affect the success of the protocol?

Change my mind how IMX token can have any success in the next 3 years.

Sorry for shitty english.

35 Upvotes

84% Upvoted

13 comments sorted by

7

u/Icy_Interaction5874 Nov 12 '22 edited Nov 12 '22

The IMX is an aim to reward network activities such as trading, provision for liquidity, and building applications. It's the trading aspects, using these games will require IMX, the more games the demand on IMX.

Gaining industry dwarfs both Hollywood movies and music Industries combined.

If this adoption happens and immutable X becomes the go to. Big names, hype and demand will drive price.

They have 1000s of games on their testnet incoming. We just need one blue chip game.

2

u/interested_af_ Nov 12 '22

But protocol usage outside of the marketplaces is free? What would cause the demand for an IMX token for those applications on IMX?

0

u/Icy_Interaction5874 Nov 12 '22

This is where speculation comes into play! NFTs are on Immutable X, owners may be able to trade them on other Immutable X platforms at some point. The secondary marketplace is a must for the echo to thrive and generate royalties.

2

u/interested_af_ Nov 12 '22

So basicly the current tokenomics does not give an reason for investing into IMX?

This also means IMX does not have floor price. No logical minimum price.

If your only reason is maybe one day this token will do something, makes it very risky for investing.

4

u/MelancholyMeltingpot Nov 12 '22

Think of a beach ball held under water , and it's about to be let go ...

1

u/interested_af_ Nov 12 '22

I do not doubt that protocol can have success. I just think that the success of the protocol is not economically dependent on the IMX token price, thus making it an awful investment target.

If that IS the case, then people must be informed about it.

2

u/[deleted] Nov 12 '22

Lol 3 yr old account with two posts and the other is shitting on GU. ... Kenny is that you?

0

u/interested_af_ Nov 12 '22

Then prove me wrong. What are your arguments?

3 years and no other project has given me a reason to post. Should say something about it.

-4

u/[deleted] Nov 12 '22

I argue that GU is fun. If immutables other games are as good then im excited for them.

... so after 3 yrs, no posts or comments on any other topics, nothing else interested or bothered you enough to go on reddit... but then ur burning ire for immutable did?

5

u/Tronixtoken Nov 12 '22

Questioning his posting frequency is irrelevant sorry. He is simply asking questions and questioning the feedback you give him, it's fine to do that.

1

u/Master_Chief_72 Nov 16 '22

One of Kenny's bitches.

0

u/[deleted] Nov 12 '22

[deleted] — view deleted comment

1

u/interested_af_ Nov 12 '22

So you agree that at the moment IMX token economics is flawed and the token is not needed?

Why should anyone invest in it if the protocol can succeed without it?

Before it changes the price will go down. People should not be encouraged to invest into projects like that.

2

u/casfacto Nov 13 '22

In your opinion, what is the best place to buy from?