It should be noted that cryptocoin Enjin (CCC:ENJ-USD) is more relevant than ever. There’s a lot to like about it: It is highly relevant to the burgeoning non-fungible token (NFTO) marketplace, it launched its own metaverse and the project has favorable token economics, or tokenomics.
And like much of the crypto world, Enjin has experienced rapid growth. Year-to-date, its value is up 2,500%. That growth, combined with those previously mentioned factors, makes Enjin highly interesting right now.
The best place to start in understanding Enjin is to start with the most relevant topic: The metaverse.
Enjin & The Metaverse
Oct. 28 was one of the seminal moments in the history of Facebook (NASDAQ:FB). That is the date that Mark Zuckerberg announced that it was changing its name to Meta Platforms.
That name change signaled to the world that the metaverse was now extremely relevant. In short, the digital mirror of the real world that is the metaverse became much more important.
The idea that the next generation of the internet will be heavily immersive and reliant upon virtual reality technology is now much more tangible: If Facebook believes in it enough to rebrand itself, the metaverse is instantly legitimized.
Enjin, a platform already noted for gaming, NFTs and the broader metaverse, also became instantly legitimized on Oct. 28.
In fact, Enjin announced its own metaverse a week after the Meta Platform rebrand.
Enjin’s metaverse, Efinity, would be receiving a significant boost following its Nov. 5 introduction. My Meta Studio and MyMetaverse CEO Simon Kertonegoro wrote that his firm would lend its capabilities toward the Efinity project. Once they finish building the MyMetaverse project, they are going to focus on collaborating with Enjin to build out the Efinity project.
Hopes are very high if Kertonegoro is to be believed. He asserts that Efinity will eventually be the most-used NFT chain in the world because of its technological and philosophical underpinnings.
He notes that more than 70 game developers have already adopted Enjin. And he believes that almost all of them will eventually adopt Efinity as well. As he asserts, “Enjin is the best set of NFT development tools in the space, where Efinity is more like the Internet of NFTs.”
I’m not quite sure what the internet of NFTs really means other than a connected web-type ecosystem, but there are many positive signs surrounding Enjin generally.
Another of them is the economics of Enjin itself as it relates to the ENJ coin.
ENJ Coin Value
ENJ coin fundamentally makes sense from the economic perspective of an asset. Assets are only valuable if they are limited and unique.
That’s part of the reason cryptocurrency followers are bearish on Dogecoin (CCC:DOGE-USD): It has an unlimited supply in theory, with 5 billion additional coins to be minted annually for its lifetime.
Conversely, every asset created on the ENJ platform contains ENJ. ENJ is a minting resource locked inside of an NFT, and thus removed from circulation each time an asset is created.
In a way, it’s fair to think about it like gold smelted into jewelry: That gold is no longer in circulation, but rather locked into the piece of jewelry that gets created.
What to Do
To be honest, it’s very difficult to know what will truly become of Enjin. It has garnered a lot of early support. Likewise, its NFT angle in relation to the metaverse also makes it interesting.
Ultimately, it’s too early to tell if Enjin carves out a massive niche in the impending metaverse. The good news is that it won’t be inflationary like Dogecoin.
I couldn’t say that I’d recommend going full bore into ENJ now, but it makes sense to pay attention to it moving forward.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.