Note: Right now this currency is only being offered to select Private Wealth clients. Click here to learn more about our Private Wealth (OTC) team and what they can do for you.
About this Statement
Bitbuy Technologies Inc. (“Bitbuy” or “we”) believes that our users should understand the crypto assets that they are able to trade using our crypto trading platform (the “Platform”). One of the crypto assets we offer through the Platform is ENJ. We created this summary to help you understand the basics of ENJ as well as some of the risks involved in acquiring it. While we tried to describe the key features of ENJ here, this summary isn’t meant to tell you everything you’d want to know before acquiring it. You should also do your own research on ENJ to make sure you are comfortable acquiring it.
Description of ENJ
ENJ is an Ethereum-based token (known as an ERC-20 token) associated with the Enjin platform (“Enjin”), a suite of software development tools that allow for the creation of fungible or non-fungible tokens representing in-game items or currencies for video games. Enjin was established by Enjin Pte. Ltd., a Singaporean company founded by by Maxim Blagov and Witek Radomski in 2009.
Enjin is designed to allow users to create virtual goods and integrate them into their games. For example, these virtual goods may include in-game currencies or in-game items like weapons or skins for characters. In order to create these virtual goods, developers must buy and spend ENJ to create the items using Enjin. The created item will have a certain amount of ENJ associated with it, which can later be reclaimed by the owner of the item by “melting” it – essentially selling the item for ENJ. Because the items are represented by tokens, they may also be traded by their holders and the transactions will be recorded on the blockchain.
Enjin offers a variety of software development kits (“SDKs”) to lessen the expense and difficulty associated with minting virtual goods and has also developed application programming interfaces to help integrate the use of these items into a user’s game.
As an ERC-20 token, the strength of ENJ is dependent on the strength of the Ethereum network. If the Ethereum network were to experience a serious issue, ENJ’s price could decline significantly.
The price of ENJ could also decline in connection with issues related to scaling and popularity with developers. If developers utilize alternative platforms, there could be an adverse effect on demand for and price of ENJ. This effect could result if competing platforms draw developers away from Enjin. Additionally, if the network cannot support mass influxes of users, users may leave the platform, thus affecting ENJ’s price.
Like other crypto assets, there are also some general risks associated with acquiring ENJ. We describe many of these general risks in the risk statement we publish on our website, including risks relating to: (i) volatility; (ii) access, loss or theft, (iii) control of processing power; (iv) settlement of transactions on crypto asset networks; (v) momentum pricing; (vi) private keys; (vii) internet disruptions; (viii) faulty code; (ix) network development and support; (x) regulatory risk; (xi) network forks; (xii) air drops; (xiii) voting rights; (xiv) cybersecurity incidents and other systems and technology problems; and (xv) unforeseeable risks. While we tried to describe the key risks associated with ENJ here and in our risk statement, these aren’t all of the risks associated with trading in ENJ. You should also do your own research on ENJ to make sure you are comfortable acquiring it.
How Bitbuy Decides to List Crypto Assets
Bitbuy reviews crypto assets before making them available for trading on the Platform. In making our decision to list a new crypto asset, we consider publicly available information about the crypto asset, including (among other things) its creation, design, governance, usage, supply, demand, maturity, utility, liquidity, material technical risks and legal and regulatory risks.
To date, we have only made crypto assets available for trading on the Platform which have significant supply, demand and liquidity. In our experience, crypto assets with these qualities tend to also satisfy the other criteria we evaluate as part of our review. That being said, our review process is fulsome and flexible, and we don’t prioritize any one factor over another. You should review the risk statement published on our website for more information about our procedures for determining whether to make a crypto asset available for trading on the Platform.
Bitbuy is offering crypto contracts to purchase and sell ENJ in reliance on a prospectus exemption contained in the exemptive relief decision Re Bitbuy Technologies Inc. dated November 30, 2021. 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 provinces and territories of Canada would not apply in respect of a misrepresentation in this statement.
No Canadian securities regulatory authority has expressed an opinion about ENJ, including an opinion that ENJ is not itself a security and/or derivative.