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Immutable’s IMX token took a hard, ungraceful plunge late Thursday, its price unraveling like a string of pearls after the firm disclosed a sharp-edged letter from the U.S. Securities and Exchange Commission. They called it a Wells notice. For those who’ve missed the memo, that’s SEC-speak for “we might sue you.” IMX hit a 14% plummet, grinding down to $1.15 by day’s close—though it was trading around $1.29 just hours earlier, according to CoinGecko. The regulatory boogeyman claims Immutable’s 2021 IMX sale was an unregistered securities offering, or so they imply.

Immutable Fires Back, Denies IMX as a “Security”

Immutable’s got a bone to pick. “Despite the SEC indiscriminately claiming that tokens across the industry are securities, we are confident the IMX token is not,” a spokesperson popped off, taking clear aim at what they see as a sweeping overreach. Apparently, the notice served up a slim salad of legalese, “limited meaningful detail,” and not much else. But try as they might, Immutable can’t shake the specter of SEC enforcement. When asked for more context, the SEC itself shrugged, claiming they “do not comment on the existence or nonexistence of a possible investigation.” Standard line.

Crypto firms lining up under this hammer include Coinbase, OpenSea, and Uniswap Labs, so Immutable’s not alone in this fight. Yet, they’re casting this as a matter of principle, staking their claim that IMX isn’t a security, and calling the SEC’s tactics an “overreach.”

Gaming Metaverse on Ethereum Shivers as IMX Tank Fest Unfolds

Immutable has built quite the ecosystem, stitching together Ethereum-based solutions like Immutable X and Immutable zkEVM, and attracting hundreds of developers to build Web3 games. Flagship titles such as Gods Unchained and Guild of Guardians are at home here, with other promising projects like Illuvium and Ember Sword tagging along. But the SEC’s looming presence has cast a long shadow over the platform, triggering a fresh wave of doubts across crypto gaming circles.

The IMX token was riding high just this past spring, riding gaming momentum to a peak of $3.64—the best it’s seen since early 2022. But even that feels far away now, as IMX price erosion continues. Now sitting 88% below its all-time high of $9.52, the token is knee-deep in a 68% nosedive since spring. IMX’s swift descent highlights the rocky terrain these gaming tokens are navigating amid tightened regulatory scrutiny.