High-Risk Move by Young Rich Listers: Cayman Islands Crypto Sale During Job Cuts

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Immutable, a crypto start-up based in Australia, has been seeking to sell slabs of its tokens to private investors on behalf of a Cayman Islands-based entity—all while the company is letting go of some of its staff.

Last year, the start-up, Immutable, was valued at $3.5 billion. Currently, the company is searching for investors in the private market to purchase the ImmutableX (IMX) token used on their platforms. Last week, the company announced their second round of lay-offs within six months.

Immutable’s pitch to potential token buyers claims that despite the recent downturn in crypto and non-fungible token markets, “the world will be tokenised,” “all digital native content + real title will become NFTs,” and “liquidity and utility will turn NFTs into a trillion-dollar asset class.”

Selling self-manufactured tokens has become a usual practice in the crypto world. Sometimes, potential investors offer a lower price on public exchanges. As per Immutable’s recent financial report, the company has over $478 million of IMX tokens on its balance sheet.

Instead of selling the IMX tokens in its possession, Immutable has been advocating for the Digital Worlds Foundation, which is a non-profit organisation located in the Cayman Islands.

The spokesman for Immutable did not provide details regarding the private token sale because it is confidential to the foundation.

“We can confirm that the funding round is being led by a major venture capital firm and was oversubscribed more than twice within the first 72 hours,” the spokesman said.

“DWF and its subsidiaries, which include the issuer of the IMX token, are separate from the Immutable Group. They seek support from service providers, such as advisers and software developers, which may include the Immutable Group.”

After Immutable raised $280 million in funding last year, James Ferguson and his brother Robbie gained significant prominence in the Australian crypto industry.

The brothers’ ranking on the Financial Review Young Rich List significantly improved due to the round, and their wealth was estimated to be over $500 million each last year.

Still, according to a knowledgeable source, the Australian Accounting Standards Board is reviewing how companies register intangible assets, including examining the uniformity of accounting methods at crypto firms.


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