What is Enjin?
The Enjin platform is a blockchain-based ecosystem focused on creating, managing, trading, and integrating digital assets, primarily for the gaming industry. Launched in 2017, the ENJ ERC-20 token allows developers to tokenize in-game items on the Ethereum blockchain, ensuring ownership, provenance, and interoperability of gaming assets. Players can earn, trade, or sell these blockchain-backed items across different games and platforms. The Enjin Network also encompasses a suite of tools and services, including the Enjin Wallet, a mobile cryptocurrency wallet, and the Enjin Marketplace, where users can trade and sell digital assets. Through its innovative use of blockchain technology, Enjin has positioned itself at the forefront of merging gaming with decentralized assets, enabling new possibilities for virtual economies.
In June 2023, the Enjin team announced the migration of its network and ENJ token from the Ethereum network to its own layer one Enjin Blockchain. The new Enjin Blockchain subsequently launched on September 13, 2023. As part of this transition, the utility of the original Enjin Coin (ENJ) will transfer from the Ethereum network to the new Enjin Blockchain's mainnet. This migration will allow the Enjin Coin community to leverage the new features and capabilities of Enjin Blockchain.
What is ENJ?
Enjin Coin, or ENJ, is an ERC-20 token that was launched in June 2018. The Enjin network originally used the ERC-20 ENJ to back the value of digital assets created on its platform. On September 13, 2023, the Enjin Blockchain was launched marking the beginning of ENJ’s transition from the Ethereum network. ERC-20 ENJ can be manually bridged over to the new Enjin Blockchain on a 1:1 basis to access the network’s new features.
Prior to the deployment of the Enjin Blockchain, there was a maximum supply of 1 billion ENJ tokens. The new Enjin Blockchain ecosystem will have a maximum supply of 1.75 billion ENJ tokens. For a full overview of the Enjin Blockchain launch, read through their official announcement here.
Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.
No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.
Wealthsimple has performed an assessment of whether ENJ can be supported by Wealthsimple’s platform, including whether ENJ is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated ENJ based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of ENJ, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created Enjin;
- The supply, demand, maturity, utility and liquidity of ENJ;
- Material technical risks associated with ENJ, including any code defects, security breaches and other threats concerning ENJ and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
- Legal and regulatory risks associated with ENJ, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ENJ; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether ENJ, or generally about whether the type of crypto asset, is a security and/or a derivative.
Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to ENJ may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support ENJ.
Like all other crypto assets, there are some general risks to investing in ENJ. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.
Additional Risks / Information
Wealthsimple only supports the ERC-20 version of ENJ and does not support the version of ENJ available on the Enjin blockchain. Wealthsimple cannot bridge or convert the ERC-20 version of ENJ to the token on Enjin blockchain. If you wish to bridge or convert your ERC-20 version of ENJ, you must first withdraw it and then bridge or convert it using tools provided by the platform or protocol, which may subject you to additional risks.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading ENJ. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.
Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).
The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Last updated: January 1, 2024