Enjin Coin Review ($ENJ) Virtual Goods Trading Platform

Before moving to the review of this project, I want to tell you about my youtube channel subscribers’ demographics. 94% of my youtube subscribers are males, more than 55% of them aged up to 34 years old. What does it show? I am not sure, but I will make an assumption that this age bracket (from 17 to 34 years olds) play games quite regularly. Whether it happens sometimes (mobile games) or quite often (pc gaming, console gaming). If you are a PC gamer I am sure that when you play online competitive games, it often occurs to you that you want your character to have unique-looking clothes or beautiful guns which are rare. And guess what? You buy it when you want it and have enough money. You can buy it either from the game’s store or directly from players. This is called virtual goods market in the gaming industry.

Now we know what virtual goods market is, so we can move on to the topic of today’s presentation, Enjin Coin project. I will describe the project in details on the following slides, but for now I simply want to mention that I really like that this ICO has established business with a huge customer base. I hope that soon we will see well-known companies creating their own cryptoassets on the Ethereum blockchain.

I will not cover this slide extensively, if you want the details on the team, just check out their site and linkedin profiles. For me, everything checks out. Here I can just say that Enjin Coin team consists of employees from Enjin company. The similar situation occurred during the BAT ICO, which included the whole Brave browser team. Also, they are partnered with Bancor which is going to help with the mechanism of assets creation and exchange. If you want more details, certainly check out their blog posts concerning the Bancor partnership ( https://medium.com/@coinfork/bancor-enjin-partner-and-pre-sale-is-extended-7b6982442d08 ).

What does this project want to do? Enjin Coin wants to create cryptocurrency and decentralized platform for trading virtual gaming goods.

Enjin Coin project gives a wide range of tools to help different users of its platform to monetize their content. The project is concentrated on gaming forums and content management system.

Enjin wants to take part in the virtual goods market which is projected to reach $17bln by 2020.

The users of the Enjin Coin platform will create demand and supply for virtual commodities within games and gaming forums by using ENJ coins.

Enjin is a well-established business with more than 18mln. registered users and 60mln views per month.

In order to make the coin more popular, games and communities can mint unique in-game items, currencies, and privilege tokens using ENJ as the parent currency.

Let’s now expand on the main users and why they will need Enjin coins.

Communities will be able to
• Gamify websites (where users will get tokens for making something valuable for the community)
• Strengthen user participation (where users will be rewarded for the active participation on the forums and games)
• Automate rewards

Content creators will be able to create
• Token that can represent commodity (swords, shields, well, you know)
• Management of virtual goods (users’ wallets will have real market value)
• Subscription to in-game or forum services

Gamers will be able to
• Buy & sell items for real value (imagine being able to sell something and immediately get the money on your bank account)
• Trade between gaming items
• Earn ENJ for playing games
• Own valuable currency

Enjin Coin and virtual assets are deployed as ERC20 tokens on the Ethereum network. Actually, it poses many challenges if we take a look at current problems of Ethereum blockchain. Finally, the pending transaction section, which was always empty, is now full with thousands of unconfirmed transactions. Shame, but , thankfully, it is soon to be solved with scalability solutions (Raiden, Casper, Plasma).

One of the advantages of Enjin Coin is that it already has a large platform, where it will implement ENJ token system in near 6 months. The majority of ICO projects do not have this kind of luxury.

Enjin Coin wants to tap into the Virtual Goods market. Enjin is one of the largest social gaming website platforms.

The total revenue from the sales of virtual goods has grown from $3bln to $8bln from 2010 to 2015.

Currently, there is no close competitor to Enjin Coin. Maybe MobileGo , but it is concentrated on mobile games virtual goods. If you want to know more about MobileGo, check my review on it ( https://medium.com/@EthereumRussian/ico-review-of-mobilego-mobilego-tokens-6f099b9de240 )

Virtual goods market is becoming more prominent with more people buying expensive items in games (CS:GO, TF2, DOTA, League of Legends, Minecraft, etc.)

What are the main markets for the virtual goods?

Free to play games – 54%, MMO games – 34%, Social networks – 23%, PC Games – 12%.

The profit generation comes from the appreciation of the ENJ tokens due to the active usage of the platform.

ENJ investors/tokenholders will have an opportunity to trade with each other outside of the game environment, and even trade and establish value across multiple different games.

Enjin will be developing a marketplace, wish-lists, and auction features, directly inside of the Enjin social network and Activity Feed system to facilitate P2P trading.

Actual usage and success of the platform will create strong demand of ENJ tokens. It will ensure the lucrative growth of ENJ capitalization.

ENJ platform will be open source, so other games/platforms will be able to implement ENJ.

The Enjin social media accounts’ popularity is shown on the slide.

Pre-ICO already raised around $12 mln. Only 300.000.000 tokens will be distributed to ICO participants on 3rd of October.

All the ENJ tokens will be distributed through the Pre Sale and Public Sale stages.

Project will distribute 80% of its tokens to investors (pre-ICO and ICO).

ICO is hard capped at ~50000ETH. And they already collected 38000 ETH.

Token presale period from Aug-21 to Sept-15; Public crowdsale period from Oct-3 to Oct-31.

50% proceeds will be used in development, 30% marketing & growth, 5% security, 5% legal, 5% hosting & infrastructure, 5% contingency.

Advantages of Enjin coin
• Enjin has well established business, which shows the ability of the team to work hard.
• Project has big consumer base
• The ENJ could gain market adoption much faster due to the above mentioned advantages
• There doesn’t seem to be a very active competition in the field. Correct me here if I am wrong

Disadvantages
• Reliance on 3rd parties games
• Ethereum blockchain which is quite clogged at the moment and barely usable due to the high demand (this disadvantage will hopefully disappear in the near future when the scalability solutions will be implemented)