Explained: Enjin ENJ Token

ENJ Token
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Learn about the ENJ token

Enjin Coin is a project of Enjin, a company that provides an ecosystem of interconnected, blockchain-based gaming products. Enjin’s flagship offering is the Enjin Network, a social gaming platform through which users can create websites and clans, chat, and host virtual item stores. Enjin allows game developers to tokenize in-game items on the Ethereum blockchain. It uses Enjin Coin, an ERC-20 token, to back the digital assets issued using its platform, meaning that items can be bought, sold, and traded with real-world value.

In the first ten weeks of 2021 the price of ENJ has increased 1192% from $0.13 to $1.68.

According to co-founder Radomski, Enjin Coin is unique in that every token minted with Enjin Platform is directly backed by ENJ, giving in-game items real-world liquidity. Similarly, Blagov has stated that the company is focused on adoption, saying he imagines a future in which millions of gamers use digital items backed by Enjin Coin without even knowing it exists.

Enjin Coin uses a series of smart contracts to which game developers send ENJ to mint new, unique fungible or nonfungible ERC-1155 tokens. These tokens can be traded on the Enjin Marketplace or exchanged for their backing ENJ at any time. As more custom tokens are minted, more ENJ is removed from the ecosystem, thus making it scarcer.

The Enjin ecosystem is opening up this year. The company will launch Jumpnet, a private blockchain, in April, while the upcoming scaling solution Efinity is planned for the end of the year. Ultimately these two blockchain scaling solutions and the Ethereum blockchain will all tap into the current ENJ supply pool. In addition, it will be possible for Efinity to connect with other blockchains, even though details surrounding that feature are still scarce.

The Enjin Coin can be purchased on cryptocurrency exchanges such as Binance, Bithumb, Uniswap, and Balancer, among others. It can also be traded against fiat currencies such as the U.S. dollar and the Euro. Exchanges usually offer several pairing options, giving token owners the chance to choose a pairing based on currencies they already possess. Recently Enjin got the official regulatory approval to bring ENJ to the Japanese market. Below are the top 5 trading pairs for ENJ.

Source: CoinMarketCap

More recently, against the backdrop of soaring “gas” fees on Ethereum, Enjin is looking to tackle issues of scaling and interoperability. According to a press release, the platform will be releasing two new offerings it claims will redefine the non-fungible token (NFT) market.

Dubbed JumpNet and Efinity, the company says its two blockchain solutions will increase support for NFTs while removing Ethereum’s expensive gas fees from the equation altogether.

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