Ethereum Layer-2 Immutable X plans $500 million for NFT, game developer

Invariably, the company behind that Immutable X-Layer-2 scaling solution to the etherannounced the launch of a $500 million fund to encourage developer adoption of the platform. The Immutable Ventures fund will invest and make grants in projects built on top of Immutable X using a mix of IMX tokens and cash in partnership with a range of VC funds and ecosystem allies.

Immutable today unveiled the $500 million project, which includes assets from companies including Animoca MarksBITKRAFT Ventures, GameStop, Arrington Capital, King River Capital, AirTree and Double Peak.

“immutable Ventures will target NFT projects committed to our growing digital ecosystem, with the understanding that we have only just begun to scratch the surface of the tremendous potential for this category,” said co-founder and president Robbie Ferguson in a press release .

Immutable X is a scaling solution that enables faster, cheaper, and more energy-efficient transactions than Ethereum’s own mainnet can handle. The platform transacts on a separate chain and then uses StarkWare’s StarkEx Rollup Technology to bundle the transactions and pass them to the Ethereum blockchain.

This makes Immutable X well-suited for applications that require large numbers of transactions, including potential low-value purchases – such as crypto-powered games and NFT projects.

An NFT is a blockchain token that works like proof of ownership and is commonly used for digital goods such as artwork, collectibles, and video game items. Potential video game use cases for NFTs include player avatars, virtual lots, rare weapons, and apparel.

GameStop is one of the most famous companies to build on Immutable X as it is one upcoming NFT gaming marketplace will use the platform. In February, Immutable and GameStop announced a $100 million token grant fund for crypto game developers.

decrypt asked an Immutable representative whether those previous funds remain separate or are now part of this $500 million initiative, but received no immediate clarification. We will update this article when we receive feedback.

Immutable X is also used by partners like social video platform TikTok, NFT collector platform VeVeentrepreneur and NFT Creator Gary Vaynerchuk, and esports giant ESL. Leading NFT marketplace Open sea also announced plans to integrate Immutable X in March 2021, although this has not happened yet.

NFT based games like gods unleashed, Guild of Guardians , Illuvium and Ember Sword also build on the scaling solution. Immutable and its partners plan to offer development and tokenomics consulting, community and marketing support in addition to funding.

“We’re taking the lessons of developing two of blockchain’s biggest games – Gods Unchained and Guild of Guardians – and hiring the brightest people Web2 Studios like Riot Games to make it easy and rewarding for gaming studios to enter the NFT gaming world,” said Ferguson.

Most recently role-playing game (RPG) Illuvium sold $72 million in virtual land NFTs on Immutable X. Last summer, Player Pledged $203 million worth of cryptocurrency to buy plots of land in the upcoming RPG Ember Sword, also based on Immutable X.

According to that Immutable Ventures website, the fund is expected to provide investments and grants over a four-year period, with an expected average investment of $100,000 to $500,000 in tokens and cash. The fund has already made a number of investments, including in StarkWare, game development platform Stardust and NFT game PlanetQuest.

Immutable Ventures plans to use “around 500 million” IMX tokens over the course of the campaign. Currently, IMX is valued at around $0.76 and has depreciated significantly over time broader crypto market crash. It is down 19% over the past 30 days and is now 92% below the $9.52 high set last November.

Fixed in March raised a $200 million Series C round which valued the Australian firm at $2.5 billion, adding it to a long list of crypto “unicorns” valued at at least $1 billion. Investors included Animoca Brands and Chinese gaming giant Tencent.

Table of Contents

Toggle

Do you want to be a crypto expert? Get the best of Decrypt straight to your inbox.

Get the Biggest Crypto News + Weekly Roundups & More!