What is Enjin Coin (ENJ)?

Enjin Coin (ENJ) is an Ethereum-based cryptocurrency that plays a central role in a network designed for virtual goods and gaming. Introduced by Enjin in 2017, the ENJ coin is an ERC-20 compatible token, meaning it can be transferred and managed using any Ethereum wallet. Enjin Coin is a crucial part of an ecosystem that includes a marketplace, wallet, and developer platform, primarily catering to NFTs, gaming, and distributed apps.

Enjin Coin (ENJ) was initially launched as an ERC-20 token on the Ethereum blockchain in 2017. This allowed it to be used for transactions and smart contracts within the Ethereum ecosystem. However, Enjin has expanded its reach beyond Ethereum with its project Efinity - a parachain in the Polkadot ecosystem, which focuses on enhancing interoperability and transaction efficiency for NFTs. Efinity aims to enable decentralized cross-chain protocols, allowing NFTs from any blockchain, including Ethereum, to be transferred seamlessly across different networks. Subsequently, the Efinity parachain on Polkadot has been migrated to the Enjin Blockchain to become the Efinity Matrixchain, further enhancing the NFT capabilities of the Enjin ecosystem. This makes ENJ a unique token in the sense that it bridges multiple blockchain ecosystems, enhancing its utility particularly in the realm of NFTs and digital assets​.

The Enjin Blockchain is distinct in its architectural approach, integrating key functionalities like the creation, utilization, and transfer of NFTs directly into its core code. This design choice diverges from the typical reliance on smart contracts seen in many blockchain systems. By embedding these essential NFT-related functions at the protocol level, the Enjin Blockchain enables projects to develop digital assets that are not only scalable and equipped with advanced features but also maintain compatibility with various blockchain ecosystems. 

Enjin, the company behind ENJ, has been a significant player in the gaming industry since 2009. The coin was created to empower users to create, manage, and monetize various digital assets and in-game items. Each digital asset created on Enjin is assigned a value in ENJ, infusing real-world value into virtual goods. This feature has made Enjin Coin particularly attractive in the gaming community, allowing gamers to store and trade unique in-game items, such as characters and accessories, as tokens that can be converted back to ENJ when needed.

How does Enjin Coin (ENJ) work?

As of the latest updates, Enjin Coin (ENJ) works as follows:

Original Functionality on Ethereum: ENJ started as an ERC-20 token on the Ethereum network. This allowed it to be used for transactions and in smart contracts, a standard feature of Ethereum-based tokens. ENJ's primary role was in minting digital assets. During this process, ENJ tokens were locked inside the assets being minted, creating scarcity for the ENJ tokens and assigning real-world value to the digital assets. These assets could later be "melted" back into ENJ, making the process reversible​​.

Expansion with Efinity: Enjin expanded its functionalities through the development of Efinity, a parachain in the Polkadot ecosystem. Efinity is designed to improve interoperability and transaction efficiency, particularly for NFTs. This development signifies Enjin's move beyond Ethereum, facilitating decentralized cross-chain protocols for the seamless transfer of NFTs across various blockchain networks. This allowed for a more extensive application of ENJ across different blockchain ecosystems​​​​.

Migration to the Enjin Blockchain: In 2023, Enjin announced the launch of its own blockchain network, the Enjin Blockchain, and proposed the migration of ENJ from Ethereum to become the native token of the Enjin Blockchain’s Mainnet. This migration is intended to be on a 1:1 basis. The Efinity parachain from Polkadot, focusing on NFTs, has been integrated into the Enjin Blockchain as the Efinity Matrixchain, enhancing the NFT functionalities within the Enjin ecosystem​​​​.

Current Ecosystem and Future Prospects: Enjin now presents a more integrated blockchain ecosystem that encompasses ENJ's functionalities within Ethereum, the cross-chain capabilities with Efinity on Polkadot, and the new Enjin Blockchain. This multifaceted approach enables ENJ to serve a broader range of functions, particularly in the realm of NFTs and digital asset management, across different platforms. Furthermore, recently Enjin got involved in the process of migrating over 200 million Enjin-powered assets from Ethereum to the new Enjin blockchain - a process which may have been completed already (as of January, 2024).

What makes Enjin Coin (ENJ) unique?

The Enjin platform stands out for its unique functionalities in the digital asset landscape, offering an array of software development kits (SDKs) for various platforms, and enabling developers to integrate or create new projects with ease. The platform's approach to decentralized payment gateways and virtual product development further underscores its versatility in the gaming and digital asset sectors​​. Here is how Enjin distinguishes itself:

Designed for Virtual Goods and Gaming: ENJ was primarily designed to facilitate the management and transfer of digital or virtual assets in the gaming community. It allows gamers and developers to mint, trade, and manage in-game items and assets, positioning it as a significant tool for the gaming industry​​.

Smart Contract and ERC-20 Compatibility: As an ERC-20 token, ENJ can be integrated with Ethereum blockchain smart contracts and decentralized apps (dApps), enabling a broad range of functionalities beyond simple transactions. This includes minting and managing digital assets and currencies​​.

Efinity and Cross-Chain Functionality: ENJ is part of Enjin's scaling solution, Efinity, which is designed to enhance interoperability and transaction efficiency, particularly for NFTs. Efinity, developed initially as a parachain in the Polkadot ecosystem, aimed to facilitate decentralized cross-chain protocols, allowing for seamless integration and transfer of NFTs across different blockchain networks​​.

Innovative Use of Blockchain Technology: Enjin's approach to using blockchain technology is innovative, especially in the way it allows the creation and management of virtual products and in-game assets. This has established Enjin as a pivotal player in the emerging digital asset landscape, especially in the context of NFTs and virtual gaming economies​​​​.

Strong Community Engagement: Enjin Coin is well-integrated across a vast number of gaming websites and online communities. Its SDKs and APIs facilitate easy integration of ENJ into various websites and games, enhancing community engagement and fostering a more interconnected gaming ecosystem​​.

The ENJ token: Utility & tokenomics

Enjin Coin (ENJ), an ERC-20 token launched by Enjin in 2017, is serving multiple roles within its ecosystem, particularly in relation to NFTs and the gaming sector. It was originally launched on the Ethereum network but as of January, 2024, Enjin appears to be in the process of migrating their token to their freshly founded native blockchain Enjin Matrixchain. ENJ is key to the Enjin platform, which offers diverse functionalities like integrating digital assets into games and apps, supporting NFTs, and enabling cross-platform NFT ownership.

ENJ's role extends beyond a typical cryptocurrency. It is used to mint NFTs on the Enjin network, with each NFT having a value in ENJ. As previously mentioned, this process removes ENJ from circulation, creating scarcity and adding real-world value to the digital assets. These assets can be converted back into ENJ, providing liquidity and utility.

The tokenomics of ENJ are shaped by its distribution and utility. Initially, 40% of ENJ's total supply was allocated to a private sale, and another 40% to a public sale. The rest was distributed among the team, advisors, and for community, marketing, and partnership initiatives. The total supply of Enjin Coin is capped at 1.7 billion tokens, with this fixed supply potentially leading to scarcity in the market.

Overall, Enjin Coin stands out for its multifaceted utility in gaming, NFT creation, and cross-chain interoperability, backed by a robust and growing community. As ENJ continues to evolve with developments and integration into different blockchain networks, its role in the digital asset and gaming sectors is poised to expand further​.

History of Enjin Coin (ENJ) 

The history of Enjin Coin (ENJ) is intertwined with the evolution of its parent company, Enjin, and reflects its focus on the gaming industry and blockchain technology.

Founding of Enjin and Introduction of Enjin Coin: Enjin was established in 2009, originally as a gaming community platform. Over the years, it garnered a significant user base, becoming a major player in the online gaming community sector. The concept of Enjin Coin was first announced in July 2017, and it was officially launched on the Ethereum mainnet in June 2018 as an ERC-20 token. This move marked Enjin's entry into the blockchain space, targeting the virtual goods and gaming market.

Initial Coin Offering (ICO) and Funding: Enjin Coin had its ICO in November 2017, which was quite successful. The ICO raised approximately $18.9 million, which was a significant milestone for the project. The initial token distribution saw 40% allocated to a private sale, another 40% to a public sale, with the remaining 20% divided among the founders, the team, and for community, marketing, and partnerships.

Enjin Coin's Utility and Adoption: ENJ has been primarily used within the Enjin ecosystem for buying, selling, and minting Non-Fungible Tokens (NFTs). It has been particularly popular in the gaming industry, allowing for the creation, trade, and management of in-game items and assets.

Enjin has built a robust community around its platform and ENJ, with approx 80k users as of January, 2024, and significant engagement in online forums. The company has formed notable partnerships in the gaming and tech industries, including with Microsoft for the Azure Heroes program.

Current State and Future Prospects: As of the latest information, ENJ has a total supply of 1.7 billion tokens, with 1.3 billion tokens in circulation. The Enjin team has demonstrated a strong commitment to innovation and growth in the blockchain and gaming sectors. The history of Enjin Coin reflects its steady growth and the strategic focus of its parent company on leveraging blockchain technology in the gaming industry. Its success in ICO funding, community building, and partnerships underscore its potential and position in the blockchain space​

Price history and performance of Enjin Coin (ENJ) 

ENJ’s journey in the markets began in November, 2017, at a price of $0.02. By that time, the 2018 bull market was already brewing and quickly picked ENJ up for the ride. By January, 2018, ENJ was trading at an impressive price of $0.4 - a 2000% increase compared to the initial listing price months before. Enjin was now on the map of innovative and promising blockchain gaming projects.

Eventually, the 2018 momentum cooled off and for the next 3 years, ENJ exhibited significant volatility, trading roughly in the range of $0.02 - $0.2. The next important phase of ENJ commenced in 2021, with the shaping of the last bull market. Just like in the previous cycle, ENJ embarked on a very positive trajectory, reaching a peak of $3.1 in April, 2021. After a moderate retrace, ENJ reached its all-time high price of $3.8 in November. From there, the Enjin token gradually lost momentum, reaching a low of $0.3 in June, 2022, as the bear market was now in full swing. For the past 18 months, ENJ has traded roughly in the range of $0.3 - $0.6. 

Looking back and ENJ’s journey in the markets, it’s evident that the token roughly followed the pattern of the broad crypto market, largely led by the king asset Bitcoin (BTC). While ENJ showcased significant volatility since its listing in 2017, the long-term trajectory looks to be positive, as the asset is currently trading at $0.3 (January, 2024), a 1500% increase since 2017.    

How to buy Enjin Coin (ENJ)?

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