At their Platform release to the Ethereum mainnet 20 days ago, Enjin (ENJ) saw a price surge going from $0.08 up to $0.15, and this was widely celebrated by the community until everything started tanking presumably from COVID. Currently it sits again at $0.08 which represents a good entry point after the last 2 months.
Fungible assets are extremely used nowadays, their practicality comes from the ability of being able to replace the same asset with an identical one without any consequences. Bitcoin (BTC) is one of these assets where you can lend one to your friend and then when he pays it back, it’s not the same Bitcoin, your transaction history changed, but in practical terms it would result in the same amount of UTXO’s (Unspent-Transaction-Outputs) therefore you would have the same amount of BTC to spend on your wallet.
Non-Fungibility & NFT’s
Say you’d want to book a train ticket, that ticket would be identical to all other tickets but would have information regarding seat number and name, which makes it non-fungible. This means that same replaceability that was described above does not apply, you cannot simply replace this ticket with another without major consequences.
The same concept can be applied to tokens, specially in the case of Ethereum (ETH) that has such ease in the creation of custom made tokens. Collectibles have long been an exciting topic of the blockchain blockchain community, and unique tokens will surely play a part on that, which will further increase blockchain’s narrative of producing scarcity and rarity.
Image 1 – Enjin (ENJ) Platform UI
A wave of blockchain-based games has emerged in the last years and trends, even though they haven’t gone mainstream it doesn’t seem to really be dying off either. Microst made a reveal on their Azure Heroes that they we’re working with Enjin and also rumors of Enjin (ENJ) recently announcing a collaboration with MakerDAO for a new Ethereum based game ran on Enjin’s recently launched Platform definitely gives the community some acknowledgement.
NFT’s are only a subset of the applicabilities of blockchain in finance, this does not mean however that the Industry will not grow rapidly. As we’ve seen, at their platform release a lot of people possibly feared missing out, which lead to doubling the price in a week.
Right now the entry point is where it stood before the release, and it would be a good opportunity to cover this growing sector of the blockchain finance. Other alternatives for NFT exposure would be Ethereum (ETH) indirectly since most of the action on NFT’s is there.
Currently Enjin (ENJ) can traded on Binance, Bilaxy, Bitrex, HitBTC and some others with lower volume, and after their mainnet release they could be looking to add more exchanges in the future so they can increase exposure to their platform.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Crypto Gazette or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available.