Enjin is an established all-in-one website content management system for the gaming community.
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What does the company/project do?
Enjin is an established all-in-one website content management system (CMS) for the gaming community.
The most common use of Enjin is for building community / clan / guild websites. The modules built on the Enjin platform such as Wiki page, support ticket system, forum board, and application system, allow users to create a highly customized website specifically for their communities.
Enjin is going to introduce Enjin Coin (ENJ) that gives game developers, content creators and gaming communities the currency and tools for implementing and managing virtual goods.
With the introduction of ENJ tokens, Enjin will develop a framework of open-source software development kits (SDKs), wallets, game plugins, virtual item management apps and a payment gateway platform to support the ENJ ecosystem.
What are the tokens used for and how can token holders make money?
Enjin Coin aims to be a common currency between multiple games that implement it, providing portability and transferability of virtual goods and digital assets.
ENJ tokens can be used for various things including the following:
- Trade between gaming items from the same or different games for liquidity.
- Tie-in the community rewards with in-game goods on servers or games.
- Create new tokens to represent virtual currencies, game items, or privileges.
- Setup a virtual goods store.
- Ability to take the token across any community or game and retain value.
As ENJ tokens can be used to perform various actions on the Enjin platform, the more usage of ENJ tokens and integration of ENJ tokens to the Enjin platform, the more valuable ENJ tokens should be.
- The gaming industry is large and growing rapidly. If Enjin can achieve its vision, the ecosystem can be much greater than the $25 million beginning market cap (and $31 million on a fully-diluted basis).
- The team behind Enjin grew the website from scratch to having tons of traffic, indicating the ability of the team.
- Enjin will introduce ENJ tokens to its communities rather quickly, so ENJ tokens are likely going to gain traction in the near future. This is something that most other ICO tokens cannot do.
- There are lots of market statistics about the gaming industry in the white paper, demonstrating that the team knows what they are talking about.
- Presale investors receive (1) a much more favorable conversion rate (roughly 1 ETH = 10,000 ENJ vs. 1 ETH = 6,000 ENJ at the public crowdsale), and (2) bonus ranging from 5-50%, depending on how much the contribution is. This means presale participants’ cost basis can be as low as 40% of the price to be paid by public crowdsale participants.
- Presale participants contributed 38,800 ETH in exchange for around 500M ENJ tokens. This is equivalent to a 115% bonus on top of the best conversion rate available in the public crowdsale. That’s going to create a lot of selling pressure after the tokens are traded.
- Generally, the more bonuses/discounts a project is willing to give to large participants, the lower quality the project is, unless those participants can genuinely add strategic value to the project.
- During the presale, a group of participants worked out a group-buy deal with Enjin and created a group-buy Ethereum smart contract that was reviewed by Enjin’s CTO. However, the contract was found to have a critical flaw and kill switch for the contract had to be activated.
- We are not sure if in-game trades be made in a trustless fashion on the Enjin platform. The escrow feature seems like it requires a redesign of the game to integrate with ENJ and escrow account.
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