Crypto Asset Statement - Enjin Coin

About this Statement

Coinsquare Capital Markets Inc. (“Coinsquare”) is offering crypto contracts to purchase and sell Enjin Coin in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the exemptive relief decision dated July 5, 2022. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.

No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.  Coinsquare is providing this Crypto Asset Statement on an “as is” basis and makes no representation or warranty as to accuracy or completeness of the contents.   

About Enjin Coin

Enjin (ENJ) is a blockchain ecosystem that gives developers the ability to create and manage virtual goods such as games and NFTs on the Ethereum blockchain. The ENJ token is the platform’s native currency. Fun fact: Enjin is the first non-fungible token (NFT) company accepted into the United Nations (U.N.) Global Compact.

Risks

As with all assets, investing in Enjin Coin is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to Enjin Coin below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Enjin Coin.

ENJ  token reliance on multiple networks

Although ENJ was initially offered only as an ERC20 token on Ethereum Mainnet, it was subsequently made available as a token on Solana Network.1 Consequently, the supply of ENJ is distributed among these two networks, meaning that the integrity of ENJ token is dependent on the stability and security of these different blockchain systems. Any fundamental issues in either of these networks could impact ENJ’s market sentiment, market cap, and token price.

Enjin correlation with crypto-gaming and NFT interest

As Enjin is a platform that supports blockchain gaming and NFTs on the Ethereum Network, and consequently its market capitalization may be impacted by fluctuations in interest, sentiment and user counts of various blockchain games or NFT collections. It’s important for investors to consider these factors outside of the Enjin ecosystem that may impact ENJ’s price.

Coinsquare’s Due Diligence for Digital Assets

To be made available for trading on Coinsquare’s platform, a digital asset must pass the following due diligence reviews:

  1. Coinsquare Securities Law Assessment
  2. Coinsquare Digital Asset Security Audit
  3. New Digital Asset Business Case

Coinsquare undertakes these three levels of due diligence in order to determine whether the digital asset is compliant with our legal and regulatory obligations, is secure, and has historical data supporting a beneficial business case. Coinsquare’s New Product Committee must provide final approval for a new digital asset to be made available on the platform.

References:

  1. CoinMarketCap. “Enjin Coin (ENJ).” https://coinmarketcap.com/currencies/enjin-coin/
  2. Enjin. “About Enjin.” June 2022. https://docs.enjin.io/introduction/about-enjin

Published Date: July 5, 2022