Enjin Rating Review
We assign Enjin Coin project a "Stable +" rating. We recommend participating in Enjin Coin ICO, given the availability of the bonus company in the first weeks of placement. ENJ tokens can be considered both for long-term investments and for the purpose of speculative earning.
Enjin Coin is a promising project introducing the most relevant solutions for the game industry. The main attraction of Enjin Coin is the extensive 8-year-old background within Enjin PTE LTD business - this gives an opportunity to enter a crowdsale with a formed community, which automatically makes the question of occupying a niche market irrelevant.
In addition, Enjin solution for gaming community is necessary more than ever, since there is a need to create a single safe platform for trade in game objects and related services. This relates to online games especially, where current security is provided by the authority and positive business history. Many small services for game items trade can be an easy prey for such a large blockchain project, meanwhile their cumulative market volume is huge.
The proposed free framework and open-source APIs and SDKs will be attractive for game developers and game content sellers. The ability to quickly integrate mobile applications or their websites into Enjin Coin payment system will contribute to an intensive increase in the supply of goods and services for gamers.
The key risk of Enjin Coin, appearing from the high scalability of the business, is related to the free nature of the platform: project team does not state transparentsources of financing for operating activities. The use of commission fees by most similar projects is due to the simple dependence of the state of the business andits revenue. In the case of Enjin Coin, cash flows directed to operating activities will depend on the revenue of Enjin PTE LTD business, not the platform itself.
Enjin Coin future positioning remains a serious risk. If, for some reason, the founders fail to make a fully functioning ecosystem around the virtual goods trade, ENJ token may not be the most convenient means of payment for the end customers of the platform, which will result in decrease of token demand.
It's notable that the permanent risk factor for Enjin Coin and all similar projects is the position of the gaming giant such as Steam. While in-game content is not apriority for Steam, the situation may change.
Project information and the ICO
Enjin Coin Platform is a project for creating a virtual ecosystem with the help of blockchain technologies, where developers, players and the community can manage virtual goods and in-game items on a cross-platform basis. Enjin Coin allows you to certify ownership not only to the external settlement currency (ENJ tokens), but also to in-game currencies and items, as well as to derive property rights beyond the boundaries of a particular game or community.
Enjin Coin is the project of Enjin.com team (Enjin PTE LTD) and it is based primarily on integration into the formed community. Enjin PTE LTD was established in 2009 and is currently a fairly successful business offering services for creating game communities for developers and players. According to quantcast.com, the portal has 2.4 million monthly global uniques. In Enjin documentation, the following information on Enjin.com is given:
● 250,000 gaming communities across thousands of games.
● 18.7 million registered gamers
● 60M global views per month 2
● Gaming focused Content Management System and Forum creator
● Millions of USD per month in virtual goods sales across Enjin community stores
Enjin Coin Website: https://enjincoin.io
Enjin Website: https://enjin.com
Bitcoin talk: https://bitcointalk.org/index.php?topic=2042871.0
ICO start: Oct 3rd 12PM UTC
ICO completion: Oct 31st 11:59pm PDT
Hard cap: ~50 000 ETH (about $14,650,000)
Token: ENJ, standard ERC-20
ICO price: 1 ETH = 3 000 ETH
Accepted payment: ETH
Total emission: 1 000 000 RST
- 40% - Presale
- 40% - Public Sale
- 20% - Reserved
For sale: 400 000 000 ENJ
50% - Development
30% - Marketing & Growth;
5% - Security;
5% - Legal;
5% - Hosting & Infrastructure
5% - Contingency.
Pre-sale was completed in September 15; the entire limit of tokens (400,000,000 ENJ) was used according to the results. The volume of attraction was $12 million (38,800 ETH).
There is a bonus program announced at the ICO. The size of bonus will depend on the time of purchase from the first to the fourth week and make up to 50% of the discount.
Tokens received by the team at the ICO are frozen for 6 months, after which 25% can be sold and 12.5% can be sold every 3 months after. Tokens received by advisors are frozen for 2 months. Any unsold tokens from crowdsale are frozen for 6 months and will go into the Marketing and Partnership pool.
Project service and their usage
The Enjin coin intends to integrate the blockchain technology into the gaming industry with the goal of creating a full ecosystem of gaming products and services with a single ENJ settlement currency and a set of custom sub-currencies. All project services can be divided into three groups depending on their place and function in the ecosystem:
• Create & Manage Virtual Goods;
• Transaction infrastructure - The Enjin "Smart" Wallet;
• Development environment - Game Integration & SDKs.
There is also a number of ancillary services that are designed to solve specific problems of the gaming community through the use of blockchain (Game Top Lists, Escrow, Subscribes).
Create & Manage Virtual Goods
The main problems of the gaming industry, both offline and online, are the problems of preserving the achievements (gaming property) within a single game and managing them (monetization, exchange, evaluation). The reason for the imperfection of the system is only one - its centralized nature. The current scheme for registering gaming property is quite trivial: the player earns items (an example is a rare object) and monetizes it if necessary. He finds other participants in the game who, directly or through intermediaries, are ready to buy an item for foreign currency; then there is an exchange in the gaming or non-gaming environment.
Due to the fact that the game is under control of a separate person (the owner of the server / game creator), the property is actually centralized in the same hands. Moreover, the user often does not have the opportunity to influence the game environment - there is no legal field and legal procedures. Anything can happen, from administrator error and unplanned wipe to server hacking. The only way to protect the player's property is to monetize it in a reliable currency (crypto or fiat), but this means the withdrawal of property from the game, which undermines its game meaning. Enjin team offers a way out of this impasse, linking the game ecosystem with an external safe environment.
By using the smart contract mechanism and implementing project solutions in the game engine, Enjin can create a permanent value for the object or other property and secure the player by giving the right to dispose of this property for him personally.
Through the Enjin interface (mobile, web application or API), the user creates and issues a Mint smart contract, in which he makes the following information:
- Maximum Supply
- Decimal Places
- Exchange Rate
- Access List
The created Mint smart contract is tied to a specific custom asset; accordingly it integrates into a decentralized open blockchain system, where the ownership rights of each owner of the custom asset are confirmed. After creating a smart contract, each user from the Access List can purchase a custom asset by sending the specified amount of ENJ tokens in a smart contract. Such characteristics as Name, Icon and Access List can be updated at any time by the person who created the smart contract.
Since Enjin uses Bancor technology when issuing Mint smart contracts, the introduced ENJ tokens are stored in a smart contract when purchasing a custom asset and can be exchanged at any time (Exchange Rate parameter). At the same time, after the initial release, a custom asset can be sold at a higher price in the secondary market. This allows to benefit the issuer of Mint smart contract person. Thus, the gaming developer can release a limited number of unique items through Mint smart contract and then sell them to players at a cost higher than Exchange Rate, making a profit.
The creation of Mint smart contract within the framework of Enjin platform makes possible to produce the following:
• Exchanging Coins
The simplest way to use Mint smart contract is to launch an analogue of the domestic game currency. The liquidity of such currency will be provided by a constant rate of exchange for ENJ tokens, and its reliability is similar to ENJ ("Bancor price floor", Exchange Rate parameter in Mint smart contract). The released currency will have real value, which does not depend on the game or the administrator, as the reverse exchange for the ENJ token is possible under any circumstances.
• Custom Coins as game items
In addition to releasing coins еhe mechanics of a separate game can assume the presence of additional effects in Custom Coins. Coin becomes a unique gaming item without losing its advantages as a means of exchange. For example, game developer can release Protection Coin, the possession of which increases the protection characteristics by 1 point
The most recent game solution that Mint smart contract can bring is to create a unique game object as a custom asset. Theoretically, the breadth of the use of a smart contract in this case is limited only by the possibilities of the game itself. This can be an object that cannot be obtained without donation, or does not affect the mechanics (figgery, skins); the same thing can be obtained from raids on strong bosses, etc.
At the same time, even after the wipe or deletion of the game the blockchain will preserve game information and the reserved ENJ tokens will still be available. Due to this, there are options for transferring items between servers or creating "eternal" items.
Enjin founders indicate that due to the possibility of releasing blockchain items, an inter-server and inter-game economy will be created, which will directly be linked to the traditional financial system. Thus, the online market will be to the traditional model of property ownership as close as possible.
The team notes that ENJ and Mint smart contract tokens will be integrated into both the gaming environment and Enjin CMS Platform (Enjin.com). The current Enjin.com community (250,000 game websites according to Enjin) will offer new features: administrators will be able to enter automatic rewards systems when conditions are met; Custom Assets, which can confirm the right to vote or other privileges, form donation baskets (Donations & Group Pay), monetize your website as an advertising platform, etc.
The Enjin "Smart" Wallet
The key element of the ecosystem created by Enjin is the "smart" wallet. It is the link between the seller and the buyer, combining in-game transactions, the external environment and the Ethereum blockchain. Enjin wallet is built on the existing light wallet design and interacts with user-trusted games and web addresses. Using the wallet, the user will be able to buy / sell ENJ tokens, custom сoins and custom assets (items, amplifications, etc.).
In addition to the web version, the team plans to release a mobile wallet for iOS and Android to facilitate the confirmation of transactions and authentication.
The wallet is multifunctional; Enjin declares the following functions:
• Using the platform API for trusted websites / games
Any platform can use Enjin API, however, to work with the user, they must be listed as trusted. The user generates this list, and then can use synchronization, notifications and transaction requests in each of the trusted platforms.
• Confirmation of transactions by trusted platforms
The transaction confirmation procedure for operations on the trusted platform is provided by the wallet to improve the security of transactions. The user sees information about the transaction on the main wallet and confirms / rejects it.
- Transaction limits and thresholds
This function is also designed to protect the user from unwanted transactions: when a transaction occurs that does not meet the conditions specified in the wallet, the owner will receive a notification. Conditions can be spelled out in sufficient detail.
- Using smart contracts in background mode
The procedure for the formation and confirmation of transactions in a smart contract occurs in background mode. This is especially true in connection with the growing interval of confirmation of transactions in Ethereum. The team devoted a whole section to the description of this problem in the documentation. Enjin sees a solution in improving the technological efficiency of the Ethereum network due to the expected updates (Casper and Raiden). Both updates are expected to appear in late 2017 - early 2018. While the confirmation process will occur in parallel with the work of the wallet, it will limit only the possibility of using untagged transactions for the user.
- Maintain automatic payments
Using intelligent purse technologies, Enjin will be able to conduct automatic transactions on the network, the security of which is provided by Ethereum. When you buy an in-game item, the player will be automatically sent a confirmation of the transfer to the trusted platform. The user can set up automatic transaction confirmation depending on the set rules.
The general scheme of a transaction with a trusted platform is given below:
Game Integration & SDKs
To form an Enjin payment ecosystem, platforms (games, websites) that support project services and blockchain architecture are needed. Enjin is going to offer developers its own Open-Source software development kits (SDKs), plug-ins and solutions for game engines.
- iOS Swift
- Android C#
For the web, PHP and NodeJS SDKs will enable the creation of custom APIs and web services used by games and websites.
Enjin offers developers solutions in the most popular games and engines: Unity Plugin, Minecraft Plugin, Unturned Plugin, and Unreal Development Kit 4. The key plug-in for Enjin is Minecraft, as this is where most of the Enjin.com community is concentrated around. In addition, the Minecraft format is very friendly to the introduction of Create & Manage Virtual Goods service
Other services (Subscription, Escrow, TopList)
Through the use of smart contract technology, Enjin is planning to implement a technology-based service for paid subscriptions. The owner of a server or a website, using Subscription Smart Contract, can create a variety of products based on the principle of paid subscription - this can be access to content, premium accounts, etc.
All data on Subscriptions is stored in the generated smart contract, and the smart user wallet itself will make payments after the initialization of the transaction between the subscriber and the content owner.
Another accessible service in the context of trading custom assets is the familiar escrow system. When trading items, it allows securing the parties from fraud, eliminating independent intermediaries, as guarantors of the transaction, to the services of which the players periodically resort. The idea of escrow is familiar and is used in many blockchain projects; in the case of Enjin gaming ecosystem it is an additional player protection from the loss of ownership.
Also Enjin proposes to implement blockchain into the rating system (TopList service): games, servers, clans, etc. The use of blockchain architecture will solve the main problem of online ratings - the possibility of biased evaluation due to the centralized nature of the services. It uses a special type of smart contracts, which involves several different mechanisms for recording votes.
The creator of a smart contract can make a choice between a democratic vote counts (one voter - one vote) or plutocratic (the number of votes depends on the size of the donation). He will receive all receipts (ENJ tokens or custom coin), and the system will automatically generate the top list. The financial benefit of the creators of Ranking will stimulate competition in the service, which is positive primarily for the community. On the other hand, the participants in the ranking can stimulate their community to vote and compensate for the costs themselves.
Video game market is already quite large, but it is still dynamically growing. New technologies constantly support video games. Not so long ago, the mobile application market has become commonplace for the modern person, and already occupies almost half of the entire computer games market. A graph of the NEWZOO data with a growth forecast to 2020 is given below:
The figure clearly shows that the market share is moving toward games on mobile devices, and by 2020 it will take 50%, while more than half of the market continues to hold PC and gaming consoles. This confirms that the main trading platforms of the game world are Steam and PS/Xbox stores. The current distribution of the market is described in the following figure:
The gaming industry has long been global. Following cybersport disciplines, it can be seen that the strongest teams are located in the eastern hemisphere, and more specifically in the Asian region. Perhaps, many factors contribute to this, including a large population of the region. This idea is confirmed by the distribution of market revenues by region:
The project is led by a team of 8 people, mostly Enjin.com team, but there are several new people hired in connection with the significant expansion of the functionality. Practically there is no information about the team's experience in the development of fintech startups, since the backbone works in Enjin almost from the day of its foundation, and this is more than 7 years. However, Enjin was immediately attracted by 5 well-known profile consultants with vast experience in gaming industry and ICO start-ups. Separately, we note that Pat LaBine is a consultant - a key figure for the gaming market (17 years of engineering and gaming production, worked on popular games in BioWare).
We did not find any negative moments connected with the team or unconfirmed work experience.
Maxim Blagov - CEO / Creative Director
Co-founder of Enjin. Visionary and creative director with 15 years of expertise in creative direction, project management, and UX design. Expert in concept & strategy development for large interactive applications, specializing in the video gaming industry. Information on previous places of work is not available in public..
Witek Radomski - CTO
Co-founder of Enjin. Witek has overseen the technical engineering of Enjin for nearly a decade. He champions best-practices in software design, security and testing. In Enjin Coin leads the direction on the integration of crypto-currency in online gaming ecosystem. Information on previous places of work is not available in public.
Josh Woelfel - Full Stack Engineer
Vyacheslav Volkov - C# / Objective-C Engineer
Technical Lead in C#, Objective-C and Java. Developer of Enjin mobile applications. Join the team in 2016, has worked as a developer in Russian Infotech Group for 5 years.
Lilia Pritchard - Marketing / Operations
Declared 10 years of experience in marketing. Join the team in 2009, information on previous places of work is not available in public.https://www.linkedin.com/in/lilia-pritchard-30b2b2148/
Brad Bayliss - Security Analyst / Full Stack Engineer
Over 10 years of programming, security research, quality assurance and network management. Brad is dedicated towards ensuring a safe and secure network infrastructure for the millions of users and sites on the Enjin platform.
Evan Lindsay - Java / Game Server Engineer
He is developing Minecraft plugin within the project. Over five years of experience working with and network server implementations. Specialized in game programming and core Java technologies. Previously worked at MCGamer Network, MCproHosting, specializing in such online games as Minecraft, Battlegrounds, ARK.
Chris Hirasawa - Quality Assurance / Community Manager
Has more than 7 years of experience in the gaming industry. Responsible for driving the software development process toward quality-centric methodologies.
Development strategy and the roadmap
The project documentation presents the development of the roadmap. First of all (Q4 2017-Q1 2018), it is planned to develop the basic services of the system - Platform API, Smart Wallet, as well as Minecraft Plugin and Java SDK. Actually, the working platform can appear in Q1 2018. The latest development period is provided by the Subscriptions and TopList (Q4 2018) services.
The project team does not lead the Roadmap to implement ENJ in Enjin PTE LTD business, and also to develop a line of supported games, explaining this by the desire to focus on the development of MVP in the shortest possible time, which will allow building the new ENJ + Enjin CMS ecosystem as soon as possible.
It is planned to spend at least 30% of funds raised during the crowdsale. Perhaps it would be more because unsold tokens from crowdsale are locked for 6 months and will go into the Marketing and Partnership pool.
The marketing strategy is quite standard: video and in-game advertising, promotional events & tournaments, sponsorships, mobile & social media ads, and liasoning with studios.
We will consider the marketing of ICO Enjin in more detail. Enjin Coin project is an active marketing company. There are Enjin ICO announcements on the network; bitcoinexchangeguide.com and cointelegraph.com can be easily found.
The project is in complete order on social networks and instant messengers., There are 1421 participants on Telegram, 11.5 thousand readers on Twitter and almost 48.5 thousand followers on Facebook. Someone will say that this is not correct; Twitter and Facebook pages refer to enjin.com, not to enjincoin. Yes they are, but it is the target audience of the project and it is collected for years of enjin.com work, which makes it only more valuable.
It should be noted that the community leaders communicate with the community quite actively. You can ask questions on Telegram, Reddit, Slack or bitcointalk.org. We recommend reading the branch of questions in reddit to find very detailed and exhaustive answers of the questions of both the features of the project and the analysis of competitors.
The project actively uses the fame of one of its advisers - Mr. Pat LaBine. This is understandable, because Bioware former producer and technical director of such projects as Mass Effect, Anthem, Dragon Age, and Jade Empire perfectly suits the role of Gaming Tech Advisor.
Among the reviews of blockchain analysts, you can highlight reviews-announcements from ICO Alert and HACKED. Both reviews have a positive evaluation for Enjin, but it should be noted that the second review is more interesting and better formatted. Apparently, these reviews are still part of the pre-sale campaign, because they were published before its end in September 7.
Competitive features of the project
It's no secret that the largest marketplace of the gaming industry is Steam platform. At the same time the platform is poorly designed for the trading of game objects. In fact, active content trading is for DOTA2, TF2, CS: GO games. Of course, Steam will remain the main player of the market for a long time, but in the aspect of trading in virtual goods it can be pressed.
The Enjin Coin project is designed to solve the following problem: to organize the trading of any virtual goods in the detachment. It's not about the marketplace, but about the tool for game developers, content creators and gaming communities, to make easy to create and manage your in-games items, rewards, privileged tokens.
For developers, all necessary SDK for all major development languages are offered, which will allow creating your own smart contracts, smart wallets, decentralized payment gateways, subscriptions and much more. It is important to note that all these services will be open and free for the community, which will be a big plus for developers
With due diligence and rapid implementation of the announced functionality, Enjin Coin team will be able to offer the market a unique and convenient service. And the main advantage will be the existence of a gaming community around Enjin.com project, which was formed over 5 years of its successful work.
Funds collected during the ICO will go to the project development, and its operational support. According to the team estimates, crowdsale will provide 2-3 years of runway and the ability to fully complete roadmap goals or up to 5 years of development and marketing runway.
At the same time, SDK themselves will become open-source assets of the community. The founders are not planning to take any commission or hidden charges from users of services. Naturally, the commission itself will not go anywhere for the implementation of transactions, for which users will have to pay.
For the success, investors should hope that the amounts of necessary funds are calculated correctly, and it will be enough to launch all the declared services successfully.
Core Team Enjin Coin, continues to work in Enjin.com, which offers cms for the management of gaming communities. As far as we know, the launch of Enjin Coin will not change Enjin.com's economy, their services will remain paid, as it is now. Indirectly, this is a plus for Enjin Coin, as the team remains rather motivated in its development; in addition, Enjin.com will be able to support Enjin Coin.
In our opinion, the Enjin Coin project has two main risk factors. The first is whether the platform will become a full-fledged tool for trading any virtual goods, as the founders want. The parent project Enjin.com has a lively and active community that uses Enjin services to operate its communities. At the same time, Enjin Coin is not decentralized Enjin.com; it is a project with other tasks and economy, so the positive experience of Enjin.com cannot be directly shifted to Enjin Coin. The main question is whether the team will be able to attract a large gaming community to its new platform with the announced functionality. Because ENJ token has little prospect just as one more means of payment, success can be with the formation of ENJ-based ecosystem only.
The second important aspect remains the position and behavior of competitors in the market. It is obvious that the game content is most convenient to exchange and trade through the platform on which the game itself takes place. Therefore, the main competitors are Steam, PS and Xbox. So far, trade in in-game content cannot be called a full-fledged segment for the largest gaming marketplaces. Of course, everything can change quickly, and then decentralization will not be a major advantage for start-ups.
Investment attractiveness of the token
The basis of the investment attractiveness of ENJ token is its growing popularity and penetration into the gaming community, since the token is the basis for Enjin ecosystem. Using Bankor technologies to create custom assets, part of the ENJ tokens will be in the reserve of the smart contract, contributing to the emergence of a natural deficit in the market, which will move the price up. A full token entry will take place 6 months after the end of the crowdsale; until this time, on the wave of excitement around the project and the ICO as a whole, speculative growth on expectations may begin.
In the case of ENJ, there are no cash flows to tokenholders because of the free nature of the platform, as well as any rights to influence the company or community. However, this is not a minus, in our opinion. Such preferences cannot be backed up legally, and without the condition of token participation in the business infrastructure may not be executed. In the case of Enjin, the investment attractiveness is provided by the work of the platform, accordingly it is a win-win scheme for the investor and the project team.
The uniqueness of Enjin project is also that this potential market for the distribution of the token is not limited to one platform, game and even the engine. Any gaming developer can easily integrate the Enjin system into his economic model, so the potential ceiling for increase in token demand is limited only by the overall volume of the gaming industry.
In addition to the fundamental prerequisites for the growth of ENJ attractiveness, we see speculative potential. The presence of a formed community, which is also the target market for the project, is in fact the base for "warm" contacts for marketing purposes. We see a huge work of the team for promoting the project and creating a wave of hype around: there is an active discussion within the community; videos, interviews, profile events are sponsored, popular video blogs are used, the technology of the project is described in detail through postings on blogs and social networks. Also all the resources and materials of the team are prepared in the most presentable form. Feeling the created excitement, the community trusts the team and shows interest in the project. Thus, before the official launch of tokens into Enjin turnover, we can see a rise in the price of ENJ token after the ICO.
The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.
Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.
We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.