The IMX token from Immutable, a crypto gaming firm, experienced a significant decline of 14% in price after the company announced receiving a letter from the U.S. Securities and Exchange Commission (SEC) warning of a potential lawsuit. This drop occurred quickly, as the token's price fell from approximately $1.29 to $1.19 in just two hours following the disclosure of the SEC notice, which relates to a 2021 sale of IMX tokens alleged to be unregistered securities. Immutable strongly contests the SEC's claims, insisting the IMX token is not a security and describing the action as overreach. The IMX token has plummeted 68% since its 2024 peak of about $3.64 in March and is down 88% from its all-time high of $9.52 in 2021. The gaming platform, which operates on Ethereum scaling networks, hosts hundreds of game projects. Immutable has raised concerns about the SEC's broad classification that many tokens in the crypto industry are securities, identifying this pattern amidst heightened regulatory scrutiny across the sector.

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