What is Enjin Coin (ENJ)?
Enjin Coin is the native asset of the Enjin smart contract platform. Despite its name, Enjin is an ERC-20 token, and the network runs on the Ethereum blockchain. The asset is used to mint and purchase fungible and non-fungible tokens (NFTs).
Launched in 2009, Enjin was considered to be one of the biggest platforms for gaming communities online. Since 2017, Enjin has become a blockchain-based ecosystem for a wide range of digital gaming products. One of its biggest projects is the social gaming platform Enjin Network which supports more than 250,000 gaming communities.
You can see the historical Enjin price performance, including its milestones, as well as the recorded highest and lowest value above.
Who Developed Enjin Coin?
Enjin was initially founded in 2009 as a social platform for the gaming community. Its founders are Maxim Blagov and Witek Radomski. Blagov is the CEO and Creative Director at Enjin, while Radomski acts as the CTO. Radomski is also known for being involved in the development of the ERC-1155 token standard.
Enjin Network’s first array into blockchain technology occurred in 2012 when the platform enabled payments using Bitcoin (BTC). The decision to integrate blockchain technology with Enjin was taken to reinforce the network and transaction security, as well as introduce tokenized assets with verifiable ownership.
Work around the Enjin Coin project began on the Ethereum blockchain in 2017. The aim was to transition the platform into a blockchain space that uses smart contracts for its dev projects. During this process, the platform introduced new features, such as application programming interfaces (APIs) and software development kits (SDKs).
In 2017, Enjin held both a presale and an Initial Coin Offering (ICO) for the asset. During the presale, roughly 400 million tokens were sold for 38,000 ETH or $12 million at the time of the event. During the ICO, 300 million tokens were placed for sale, with the campaign raising over 75,000 ETH, then equivalent to nearly $19 million.
The Enjin Coin token officially launched in 2018. Around the time of its release, the Enjin Coin price balanced at around $0.70-$0.80. While the asset was mildly volatile during the first few years after the presale, its value did not exceed $1.
2021 saw some significant market behavior for the asset. In March, the asset value went over $1 for the first time in its history, peaking at $3.45 in early April. Throughout the rest of the year, the asset generally stayed above the $1 threshold.
November marked the highest point for the asset in 2021, as the Enjin Coin price reached $4.85. The asset has generally followed the broader crypto trends regarding its market fluctuations.
How Does the Enjin Coin Work?
Enjin Coin is an anti-inflationary token, with a maximum token supply capped at 1 billion. 80% of the supply was made available during the presale and the ICO, with 100 million ENJ being given away as bonuses during the presale. Since the token is deflationary, the Enjin Coin price is expected to rise as it becomes more scarce.
ENJ acts as a minting resource for the NFTs available on the Enjin Network. With Enjin Coin, users can mint new ERC-1155 tokens. This ERC standard combines features of both ERC-20 and ERC-721 protocols, meaning that users can mint both fungible and non-fungible assets.
Enjin is primarily used to create blockchain-based digital goods. Enjin Coin tokens back the value of the NFTs available on the network. They ensure the authenticity of each item available on the platform – all information regarding the minting of tokens is available on the distributed ledger.
The value of the Enjin-backed NFTs is tangible. The items can be actively utilized in games such as Minecraft or blockchain-based games and metaverses that are powered by ENJ. It acts as the gold standard for the platform’s NFTs as they correlate with the Enjin Coin price backing.
Players have full ownership over the NFTs that they mint or purchase. Proof of ownership is registered on the Enjin blockchain. It’s possible for players to buy, sell, and trade their items with each other. It’s possible for players to earn ENJ coins to buy NFTs by participating in the community forums.
Enjin Coin offers a unique mechanism known as melting. Users are able to “melt” their NFTs, thus retrieving their ENJ value. The process of melting is used to support the deflationary aspects of the asset and increase its scarcity. This, in turn, helps increase the ENJ price value.
Game developers can take advantage of Enjin’s software development kits. These toolkits enable blockchain integrations in digital games which can be used to reinforce network security, reduce fraud, and maintain data integrity.
Since Enjin runs on Ethereum, developers are able to utilize smart contracts. The SDKs and smart contracts can be used to deploy secure and decentralized payment gateways, multi-language support, and crypto wallets.
Additionally, it’s possible to develop new tokens on the Enjin Coin crypto platform. This allows developers to introduce more blockchain utility in their products and uses the ENJ price as the parent token value. As additional layers, these tokens are fully customizable and offer higher speed while maintaining network security.
The Enjin platform uses the Proof-of-Work (PoW) consensus algorithm to ensure network security and data validity. It’s possible that once Ethereum fully switches to Proof-of-Stake (PoS) consensus mechanism, Enjin will follow suit.
Enjin is one of the two tokens within the ecosystem. The other is Efinity (EFI), the native token for the cross-chain platform that was built for NFT development on Polkadot and metaverse support.
