Crypto Asset Statement: ENJ (ENJIN)
Last updated: April 4, 2023
About this Statement
CatalX CTS (“Catalyx” or “we”) strives to provide our users with information to assist in understanding crypto assets that are offered for trading on the Catalyx platform (the “Platform”). One of the crypto assets we offer on the Platform is ENJ (Enjin). This summary sets out certain key information about ENJ as well as some of the risks involved in trading it. While we tried to describe the key features of ENJ here, this summary doesn’t provide all relevant information on ENJ. We encourage users to perform their own research in order to understand any crypto asset that they intend to trade on the Platform.
History & Characteristics of ENJ
What is ENJ?
The ENJ coin is part of a suite of products launched by Singapore based company Enjin PTD Ltd (“Enjin”), an entity with roots based on online gaming. Enjin was founded by Witek Radomski and Maxim Baglov in 2009 as a gaming community platform. Enjin is a gaming related blockchain based platform and marketplace designed for NFTs which was launched by the development team to address perceived persistent problems faced by the gaming industry. In contrast to traditional centralized gaming experiences, the Enjin platform is designed to grant and provide gamers with direct ownership of the virtual assets they acquire through in game purchases through the use of decentralized non-fungible tokens (NFTs).
Enjin empowers gamers to hold, manage and transfer in-game items and virtual assets across multiple platforms. This capacity is created through the creation of NFTs via minting on the Enjin platform. By minting NFTs representing ownership of in-game assets creators can create unique digital assets that are tradeable and transferrable across platforms.
Risks
This overview provides a summary of certain risks associated with ENJ. We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading ENJ, and in addition, does not take into account an individual’s particular situation or risk tolerance. Purchasers are encouraged to conduct their own research prior to trading any crypto asset on the Platform. Catalyx users should read the Risk Disclosure Statement for additional discussion of general risks associated with crypto assets made available through the Catalyx platform.
Dependence on Enjin Developers. The future success of the ENJ token is likely somewhat dependent on the ongoing participation in network development by the Enjin development team. If Enjin ceases its support for the Enjin platform such actions may be detrimental to the project going forward.
Adoption by Gamers. The key use case for the ENJ token is to allow gamers to translate their in game virtual assets into NFTs in order to hold, move, trade and sell these assets on different platforms. The value of the ENJ token is likely dependent on the adoption and ongoing use of the ENJ token by gaming communities for its specific purpose. Failure of the project to attract and maintain usage in the gaming community could negatively impact its future value.
Please note that these risks and the associated summaries or overviews provided for each in the Risk Disclosure Statement are not intended to be an exhaustive discussion pertaining to all such risks and, in addition, there may be other risks that come with exposure to ENJ. We encourage all Catalyx users to perform their own due diligence to assess the risks associated with ENJ and to determine whether this level of risk is acceptable to them.
How Catalyx determines which Crypto Assets to List
Catalyx has established robust policies and procedures to review each crypto asset offered for trading on the Platform. Among other information, we review available public information relating to the crypto asset on the following topics prior to making a determination on whether a crypto asset will be listed:
The history and characteristics of the crypto asset including whether the crypto asset was launched by ICO;
Analysis of the founders or inventors of the crypto asset/related network and a review of their ongoing involvement with crypto asset/network;
How the crypto asset functions including a review of its utility or purpose;
The market liquidity for the crypto asset;
The current and proposed governance of the ecosystem on which crypto asset operates with a focus on the level of decentralization of such ecosystem; and
The position taken by any regulator with respect to the crypto asset including any enforcement action taken against the crypto asset, the related network, or the founders.
In addition to the above we also conduct an analysis of factors weighing in favor or against the crypto asset being deemed to be a security based on Canadian securities laws.
Regulatory Information
No securities regulatory authority in Canada has expressed an opinion about ENJ or any of the other crypto contracts or crypto assets made available through the Platform, including an opinion that ENJ itself is not a security and/or derivative. Changes to applicable law may adversely affect the use, transfer, exchange, or value of any crypto contracts or crypto assets you hold on the Platform.
Certain statutory rights under securities legislation in Canada do not apply in respect of this Crypto Asset Statement.