The Aussie-born crypto platform taking on Ethereum

A new platform is being launched by a 25-year-old Aussie millionaire.

| More on:
Two men in suits face off against each other in a boing ring.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • An Australian entreprenuer is launching a new crypto platform
  • It wants to tokenise things that range from music tracks to government-backed treasury bills
  • The Ethereum price, in general, may still play a part in deciding its future as crypto remains "speculative".

It's been a rough year so far for investors in crypocurrency. The Ethereum (CRYPTO: ETH) price has lost just over 40% of its value, while the Bitcoin (CRYPTO: BTC) price is down almost 50%.

But bear markets and a worsening sentiment haven't deterred some entrepreneurs from innovating this year — defiant in the face of the mass lay-offs occurring in the industry.

One Australian entrepreneur, Robbie Ferguson, is doing just that. He's pumping the gas on hiring for Immutable X, a non-fungible token (NFT) trading platform for digital assets.

As reported by the Australian Financial Review, the platform, then known as simply Immutable, was founded in the depths of one of crypto's most severe meltdowns that occurred in 2017.

Video games Etherbots and Gods Unchained were developed, and the company's foray into the trade of digital assets began. Players could buy and sell in-game items, and Immutable forged this concept into an enduring business model.

Today Ferguson is busy developing Immutable X, funded by a $280 million capital raise it secured in March.

Immutable X builds on its original premise of gamers trading non-fungible items in a frictionless environment. Unlike other NFT platforms like Open Sea or Super Rare, traders pay zero gas fees to mint, transfer, and trade their virtual assets.

Its website states it is the world's best platform for NFT trades. It boasts Marvel, Disney, and Guild of Guardians as some of its clients.

And Ferguson's personal conviction certainly matches the corporate messaging.

Speaking with the AFR, Ferguson described his ambitious vision for the future of NFTs, projecting that they will be used to tokenise assets that range from music tracks to treasury bills, recorded forever on the blockchain.

But the Ethereum price will still play a part

However, some analysts don't share Ferguson's brass-necked optimism, or at least for the immediate future, with the main culprit being the sell-off in the Ethereum price.

The correlation between the Ethereum price and NFT sales is not fully understood, with some studies showing the correlation as being either a little, some, a lot, or none at all.

Some experts take the broader view and think the crypto market in general is still speculative, and, therefore, risky. This includes Miller Tabak & Co's chief market strategist Matt Maley.

One can interpret this as meaning different things. Still, it's hard to imagine NFTs flying out the door if people believe they will lose money in the long run, with the Ethereum price acting as a barometer of investors' fear and greed at the minimum.

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Cryptocurrencies

A man holding a mobile phone walks past some buildings
Cryptocurrencies

The Betashares Crypto Innovators ETF (CRYP) is up 37% in a month. Is it too late to buy?

Looking at the CRYP ETF? Here's my take on whether it's too late to buy.

Read more »

Bitcoin ETF digital illustration.
ETFs

Why is the BetaShares Crypto Innovators ETF (CRYP) surging on Thursday?

Some massive Bitcoin news is lifting this ETF today.

Read more »

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.
Cryptocurrencies

Bitcoin ETF approved. When is it coming to Australia?

Crypto bulls will be celebrating this milestone moment.

Read more »

person dancing in bitcoin spectacles wearing a gold outfit with hands up.
Cryptocurrencies

Bitcoin price rockets to 21-month highs. Here's why

The Bitcoin price is now up more than 174% in 12 months.

Read more »

BTC spelt out on wooden blocks with a red sign going down.
Cryptocurrencies

Bitcoin price sinks from 21-month high as ETF rumours swirl

What's going on with this cryptocurrency this week?

Read more »

person dancing in bitcoin spectacles wearing a gold outfit with hands up.
Cryptocurrencies

Up 145% in a year, the Bitcoin price just smashed through 18-month highs!

After a horror year in 2022, the Bitcoin price has come roaring back in 2023.

Read more »

Two investors look at a graphic showing a bitcoin in the centre
Cryptocurrencies

Why did the Bitcoin price just hit a 17-month high?

The long-standing cryptocurrency is finding its feet to reclaim a price not seen since May 2022.

Read more »

ETF written in gold with dollar signs on coin.
ETFs

This ASX ETF is up 21% in April so far

How on earth has this ETF smashed the market by a factor of 10?

Read more »