Why you should consider investing in Enjin coin (ENJ) for the future !

Why you should consider investing in Enjin coin (ENJ) for the future !

By Djordi | DJCrypto | 10 May 2020


Before I start I would like to tell you that I have started working full-time again, which gives me less time to write articles. However I will do my best to regularly post new articles.

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Enjin Coin (ENJ)

Enjin wants to revolutionize the gaming industry through their blockchain. They want to create real-life economies for virtual worlds. Enjin builds user-first blockchain products and it will enable anyone to create, distribute, manage and integrate blockchain assets. Advantages of gaming through a blockchain are the reduction of fees and preventing fraud in the transfers of virtual goods.
The project was founded already in 2009 and the founders are Maxim Blagov and Witek Radomski. They have already more than 250.000 gaming communities and 18.7 million registered gamers.

Enjin Coin itself is a cryptocurrency for virtual goods and is an ERC-20 token, which means it is on the Ethereum network. A big advantage is that it will also have smart contract abilities. The goal is for Enjin Coin to be the most used currency in the gaming industry. What is interesting as well, is that each developer can always create its own currency unique to their community. In that case it can be backed by Enjin Coin as a parent currency. This would mean that the Enjin team has to lock up Enjin Coins to guarantee the backing.

Recently Enjin came out with SDK (Software Developer Kit). Developers of games can integrate this software into their games and communities. Furthermore this Kit comes with a decentralized payment gateway in which you can create personalized invoices, refunds, carts, etc. The payment gateway will only charge a small fee of ETH with each transaction.

Enjin has some solid partnerships and this is a good sign of course. Big names are Samsung, Unity and NRG eSports.

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Enjin Smart wallet

The Enjin Smart wallet connects everything together. This wallet will support the virtual goods of the platforms that you have chosen as a “Trusted Platform” and it will be synchronized to your Ethereum address. You will be able to trade coins and items outside of the platforms (gaming platforms) with anyone that has an Enjin Smart wallet.

Weekly chart

Here is a weekly chart of Enjin Coin compared to the dollar on the exchange Binance. I have put the indicator OBV with it, which is the On Balance Volume and also known as the “smart money” indicator :

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One thing sticks out immediately for me and that is the accumulation that is going on ! OBV has been rising for years now and is very high at the moment. Price moves inside the green channel I have drawn and is moving downwards in lower highs. The top has been touched a good amount of times already and it seems to me that Enjin wants to leave this channel to the upside. The green line on the downside has shown good support and is moving upwards, rather than downwards ! This means higher lows and is a good sign. After the last big drop it went a little bit outside of the channel, but these things can happen. It closed only one week outside of the channel and the week after it jumped right back in ! This can be seen as a fake-out to the downside. OBV has been quite impressive during the big drop and has not shown any signs of weakness. This means for me accumulation and weak hands have sold out. If price wants to break out to the upside, it has to surpass the 0,16$ level. To the downside it would most likely get supported by the 0,06$ level.

Enjin Coin will most likely be dependent on the movements of Bitcoin and this morning (Sunday) when I woke up, I saw we dropped nicely. Most of the alts went down with BTC and this will happen more often. You will see some scary moves in the upcoming weeks, because of the halving of Bitcoin. Some miners will likely stop mining, because they can no longer make profits. Hash rate might drop down a little as well and the strong miners will survive.
Do not be scared of this ! Don’t get shaken out. Price might move down quite some again after the halving, but nothing has fundamentally changed. This is all to let you sell your cryptos and smart people/money will pick it up.

My personal view

I am personally not invested in Enjin Coin, but looking at the project and the weekly chart, I would have liked to. I am invested already in too many different altcoins and I do not want to hassle anymore with all kinds of different wallets, currencies, etc. It can take up a lot of time. In the last 3 years I have learned to stick to a certain amount of cryptos and only invest in them. There are a lot of different cryptos out there and a lot of them seem interesting, so this makes it tricky to stay away from them, but you have to make choices.
Enjin is a great project and I believe it will perform well in the future. You can buy Enjin on an exchange like Binance and to store it you can use for example a Ledger wallet (ERC-20 Token, so it will be on an Ethereum address). Enjin can become a major player in the gaming industry with blockchain technology. Their coin can be used to buy all kinds of virtual goods and you can even transfer these goods to different gaming platforms. This would interconnect all kinds of games and would create a whole new virtual world with an economy integrated. This is something revolutionary in my opinion !

Conclusion

Enjin wants to revolutionize the gaming industry with their blockchain and cryptocurrency Enjin Coin. They want to create a new virtual world with an economy integrated in it. You can buy and sell virtual goods with Enjin Coin and you can even transfer them to other games. This should interconnect gaming platforms and would create a whole new virtual world.
The weekly chart looks good to me and OBV is very strong and shows accumulation. These patterns play out over the years so patience is required, but Enjin coin will most likely reward you handsomely !

While writing this article Bitcoin and cryptocurrencies have dropped nicely. Do not be afraid of these shakeouts ! We should see some good volume coming in, because of the halving event in a couple of days. I was very impressed by BTC moving towards 10K, I did not expect this before the halving. What moves up hard, comes down hard as well and especially in crypto this happens a lot. For me the 6.5/6.3K area is the one I will be watching. I really hope we can hold it here. This would create a nice inverted head and shoulders pattern on the daily and would create a beautiful W-pattern, which leads often to upside movement.

This is not financial advise and I am not a financial advisor. Please do your own research and make your own decisions.

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Djordi
Djordi

I am Djordi van Kampen and I live in France. 2017 was the year I learned for the first time about cryptocurrencies and I am intrigued by what it can accomplish in this world, for the better of course !


DJCrypto
DJCrypto

Crypto enthusiast that would like to share his experience in the market in terms of investing and trading. Also travels a lot and likes photography and minerals.

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