GameStop has dumped almost 15 million IMX tokens it had received as part of a development deal with Immutable.

IMX Floods Market

Yesterday, Immutable, the developer of Ethereum Layer 2 scaling solution Immutable X, announced a partnership with GameStop that included building out its NFT marketplace.

As part of the deal, GameStop was set to receive up to $150 million worth of its IMX token in grants upon the completion of certain milestones. Transaction records on Etherscan indicate that GameStop received has received more than 37.5 million IMX tokens over the past four days.

Since then, GameStop has dispensed with 14,989,293 of those tokens.

Over a series of three transactions—two of which took place two days prior to the partnership announcement, and one which took place a few hours after the announcement—GameStop moved the roughly $44 million in IMX to centralized exchanges Binance, Huobi, and OKX.

With a current circulating supply of around 225 million, 15 million IMX tokens represents about 6.5% of the token’s supply.

The flood of IMX tokens onto the market has likely contributed to its sharp price decline in the past day and a half. Following Immutable’s announcement yesterday, the IMX token reached prices of over $4.20, but today the token sits under $3 at press time, representing a 40% price decline. 

Immutable X is a Layer 2 NFT protocol for Ethereum that allows for quick transactions without gas fees. It utilizes zero-knowledge rollups to scale on Ethereum.

In September, Immutable raised $60 million in funding for its Immutable X scaling solution platform. 

Down from its highs of around $380 per share last January, GameStop stock hovers slightly above $100 at press time. It is up around 3% today. 

Disclosure: At the time of writing, the author of this piece owned IMX, ETH, and several other cryptocurrencies.