About this Statement
Coinsquare Capital Markets Ltd. (“Coinsquare”) is offering crypto contracts to purchase and sell Enjin Coin (ENJ) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. 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.
About Enjin Coin
Enjin is a purpose-built blockchain ecosystem designed for non-fungible tokens (NFTs) and digital assets. Originally launched on Ethereum, the platform migrated to its own Layer 1, the Enjin Blockchain, on September 13, 2023, to provide protocol-level infrastructure for gaming and virtual economies. The native ENJ token powers the ecosystem, facilitating transaction fees, staking, and governance. Historically, Enjin was the first NFT-focused organization to join the United Nations Global Compact, reflecting a long-standing commitment to sustainable and responsible blockchain development.
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
While ENJ originated as an ERC-20 token on Ethereum, the ecosystem has transitioned to a native mainnet on the Enjin Blockchain. Consequently, the utility and security of ENJ are now primarily tied to the stability of this purpose-built Substrate-based network. Users holding legacy ERC-20 tokens must manually migrate them to access the full features and governance of the current native environment. 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 a dedicated infrastructure for Web3 gaming, Enjin's value is closely tied to the adoption and activity within its own blockchain ecosystem. Its market performance may be influenced by the success of integrated titles like Lost Relics or Etherscape, as well as broader trends in the play-to-earn and digital collectible markets. 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:
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.
