Most recent update: [August 10th , 2022]
No securities regulatory authority has expressed an opinion about the Crypto Contracts or ENJ, made available on the VirgoCX Platform, including an opinion that ENJ is not itself a security and/or derivative.
What Is Enjin Coin (ENJ)?
Enjin Coin (ENJ) is an ERC-20 token that runs on the Ethereum network. It is the native currency of the Enjin network and is used to back and support the value of fungible tokens and Non-Fungible Tokens (NFTs). The coin was created to make it easier for businesses, individuals, and large brands to use NFTs. The Enjin coin is primarily used as a to create ENJ-backed or infused digital assets. These digital assets include items within various video games, digital vouchers, Art NFTS, and even fractional tokenization of real-world assets like real estate.
The Enjin coin currently powers more than two billion non-fungible tokens. The Enjin network product ecosystem supports millions of users with over 2.3 million wallet downloads and a marketplace volume of 44.7 million.
How Does It Work?
The Enjin Coin (ENJ) is embedded into fungible and non-fungible tokens through a technical process called minting. This results in the creation of a digital asset on the Ethereum blockchain. This process is also reversible, in that, the NFTs or fungible tokens created using ENJ, can be burned or dissolved and turned back into Enjin Coin.
The Enjin platform has a wide-ranging list of features that are available through its software development kits (SDKs) and APIs, this helps support the ENJ coin by providing a full ecosystem of related products. Some of the notable features include:
The creation and management of virtual goods: The primary purpose of the Enjin platform is to offer users the ability to create virtual goods in the form of fungible and non-fungible tokens and manage everything in one place. Other projects can also launch their own cryptocurrency or token on the platform backed by ENJ coin, which makes adding digital currencies to metaverses and the entire gaming world a much simpler and straightforward process.
Smart Wallet: A multi-cryptocurrency and NFT wallet that seamlessly links games and other apps. The wallet has over 2.3 million downloads.
Multiple SDKs: The Enjin team has created SDKs for Java, C#, C++, iOS, Android, Unity and others. This allows millions of developers to easily integrate Enjin into existing products or to simply build brand new projects
Enjin Beam: This allows developers to send a high volume of NFTs and fungible tokens to users with a QR code. It’s an easy way to give away free in-game items for gaming assets or send exclusive codes and discounts to your community.
Efinity: A new next generation NFT blockchain built on Polkadot
Marketplace: The Enjin marketplace allows you to discover, buy and sell NFTs. There are over 17,000 items.
What Is the History of Enjin and Who Are the Founders?
Enjin is a for-profit privately held blockchain technology gaming company headquartered in Singapore. The firm was founded by Maxim Blagov and Witek Radomski.
Maxim Blagov is a self-proclaimed visionary with over 18 years of experience in creative direction, software design, project management and marketing. He holds a Computer Science degree from the University of Technology Sydney and has spent his entire career with Enjin. Blagov currently serves as the CEO and Creative Director of Enjin.
Witek Radomski has overseen the technical building and engineering of Enjin for almost a decade. He is skilled in software design, testing, security, and leads the Enjin Coin development, implementation, and integration processes. Radomski is the current CTO of Enjin and has spent his entire working career on this project. He is the author of the ERC-1155 standard, which states that a single smart contract can govern an infinite number of tokens, as opposed to the current ERC-20 and ERC-721 standards.
Enjin was originally established in March 2009 as a community gaming platform, called Enjin Network. The company went on to launch Enjin coin in 2017, with a token sale that raised close to USD $19 million. This helped fund the roadmap of becoming a leading blockchain ecosystem developer, heavily focused on user-first blockchain products.
After launching the ERC-20 token in 2017, the firm went on to launch its own mobile blockchain wallet in 2018 called the Enjin wallet. By the summer of 2018, the company went on to launch the Enjin platform which allows game developers to issue NFTs and fungible tokens as in-game ERC-20 tokens for blockchain based games built on the Ethereum network.
What Makes ENJ Coin Unique and What Gives the Token Its Value?
Any developer that wants to mint tokens using the Enjin platform will need some ENJ to start. You can buy ENJ coin on various platforms like VirgoCX. Next, when the user goes to mint a token, the required amount of ENJ coin is removed from the user’s crypto wallet and locked inside the asset that was created. This lockup feature effectively reduces the total circulating supply of ENJ coin until the digital asset that was created is burned and the ENJ coins are released back to your wallet. This mechanism provides a very clear and structured use case for the ENJ coin. Increasing popularity and adoption of the ENJ coin and the Enjin platform will lead to more digital assets like NFTs that will be created. This may cause the demand for ENJ coin to increase as it will required for lockup within asset creation, leading to greater ENJ coin scarcity, which may cause the value of ENJ to rise.
What Is the ENJ Token Supply?
There are currently 834,331,121 ENJ coins in circulation with a maximum coin supply of approximately 1 billion ENJ.
It’s also critical to note that over 10 million ENJ coins have been locked into various ERC-1155 tokens that are held by over 127,000 collectors. This has reduced the current circulating supply.
What Are the Game Integrations for ENJIN?
Enjin allows for cross platform custom NFTS across the gaming industry by supporting various gaming engines and platforms. With plugins for Unity, Minecraft, Unturned, and a development kit for the Unreal gaming engine, the cross platform NFT and fungible token ability really makes Enjin unique.
What Are the Risks or Drawbacks of ENJ Coin? There are a couple of key risks associated with the ENJ coin that are worth taking into consideration.
The ENJ coins utility is highly tied to NFT minting on the Enjin platform. If the userbase and community growth stalls or a new competitor emerges and develops greater traction amongst gamers, the ENJ coin would lose its value.
Another major risk is developer adoption. There’s a possibility that even though Enjin has all the SDKs for developers to integrate their games, maybe game developers decide to use their own technology or choose a different competing project to ENJ.
These are just a few key issues that one should consider when looking to invest or purchase ENJ tokens.
Due Diligence Prior to listing ENJ on the VirgoCX Platform, VirgoCX performed due diligence on ENJ and determined that ENJ is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis including reviewing publicly available information on the following:
- The creation, governance, and location of ENJ and/or its primary development team;
- The supply, demand, maturity and liquidity of ENJ; and
- Legal and regulatory risks associated with ENJ.
Statutory Rights under Securities Legislation
VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30, 2022 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.