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. 

Risk statement

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. First and foremost:

No Canadian securities regulatory authority has expressed an opinion about Enjin, including an opinion that ENJ is not itself a security and/or derivative.

Wealthsimple has performed a legal assessment of ENJ prior to making it available on Wealthsimple Crypto and has concluded that ENJ is not and is unlikely to be deemed a security or derivative. However, there is a risk that this conclusion could change in the future and the impact of this on an asset’s value is outlined in our Product Disclosure.

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; and
• 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.

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. Each of these risks are described in more detail in our in-app Product Disclosure. ENJ still relies on contributions from the core Enjin platform team, and has an interactive reliance on another Enjin asset, EFI. ENJ also presents higher short history risk.

The Enjin team and community are not under any legal or regulatory obligation to disclose material information to the public regarding their activities. Holders of ENJ have no recourse to The Enjin team or Wealthsimple if ENJ declines in value for any reason.

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.

WDA is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Digital Assets Inc. dated June 23, 2023. Please be aware that the statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada would not apply to a misrepresentation in this Statement.

Last updated: September 13, 2023