Immutable X is used by companies like GameStop, TikTok, and ESL for NFT collectibles and crypto-powered video games.
The funds will support development, building on the success of blockchain games Gods Unchained and Guild of Guardians.
Immutable, the firm behind the X layer-2 immutable scaling solution for Ethereumannounced the launch of a $500 million fund to drive developer adoption of the platform. The Immutable Ventures fund will invest and grant grants to projects that build on Immutable X using a combination of IMX tokens and silver in partnership with an array of venture capital funds and ecosystem allies.
Immutable today revealed the $500 million effort, which includes assets from companies including Animoca brandsBITKRAFT Ventures, GameStop, Arrington Capital, King River Capital, AirTree and Double Peak.
“Immutable Ventures will target NFT projects that are committed to our growing digital ecosystem, with the understanding that we have only just begun to scratch the surface of the huge potential in this category,” co-founder and president Robbie Ferguson said in a statement.
Immutable X is a scaling solution that enables faster, cheaper, and more energy-efficient transactions than the Ethereum mainnet can handle. The platform transacts on a separate chain and then uses StarkEx from StarkWare winding technology to aggregate transactions and commit them to the Ethereum blockchain.
This makes Immutable X well suited for applications that require a large number of transactions, including potential low-value purchases, such as games and NFT projects.
An NFT is a blockchain token that functions as proof of ownership and is often used for digital goods such as artwork, collectibles, and video game items. Potential video game use cases for NFTs include player avatars, virtual terrains, rare weapons, and clothing.
GameStop is one of the most important companies that rely on Immutable X, because its upcoming NFT game market will use the platform. In February, Immutable and GameStop announced a token $100 million grant fund for crypto game developers.
An Immutable rep confirmed Decrypt that the previous $100 million fund with GameStop is separate from the new Immutable Ventures fund.
Immutable X is also used by partners like TikTok social video platform, NFT VeVe Collectibles Platformcontractor and NFT creator Gary Vaynerchuk and esports giant ESL. NFT market leader OpenSea also announced plans in March 2021 to integrate Immutable X, although it has yet to do so.
NFT-powered games likeraging gods, Guardians Guild , Illuvium and Ember Sword are also based on the scaling solution. Immutable and its partners plan to provide development and tokenomics advice, as well as community and marketing support, in addition to funding.
“We’re learning from building two of the biggest blockchain games – Gods Unchained and Guild of Guardians – and hiring the smartest people in the game. Web2 studios like Riot Games, to make entering the world of NFT gaming simple and rewarding for game studios,” said Ferguson.
Most recently, the role-playing game (RPG) Illuvium sold for $72 million worth of virtual land NFTs on Immutable X. Last summer, gamers pledged $203 million cryptocurrency value to buy land in the upcoming RPG Ember Sword, which also builds on Immutable X.
According to Immutable Ventures website, the fund is expected to roll out 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 investments, including in StarkWare, game development platform Stardust and NFT game PlanetQuest.
Immutable Ventures plans to use “approximately 500 million” IMX tokens during the campaign. Currently, IMX is valued at around $0.76 and lost significant value midway through the broader crypto market crash. It is down 19% in the past 30 days, and now down 92% from the record price of $9.52 set last November.
In march, immutable raised a $200 million Series C round which valued the Australian company at $2.5 billion, adding it to a long list of crypto “unicorns” with a valuation of at least $1 billion. Animoca Brands and Chinese gaming giant Tencent were among the investors.
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