HALAL Screening Cryptocurrency
Is Shiba Inu Halal?
Complete Shariah Compliance Screening of Shiba Inu to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Shiba Inu
SHIB, short for Shiba Inu, is a type of cryptocurrency that started as a fun and playful project inspired by the popular Dogecoin. It’s named after the Shiba Inu dog breed, which has become a meme sensation online. Essentially, SHIB is a digital currency that you can buy, sell, or trade, just like other cryptocurrencies. People often use it for online transactions or as an investment, hoping its value will increase over time.
What makes SHIB unique is its strong community and the way it embraces the meme culture. Unlike many other cryptocurrencies that focus on serious technology or business applications, SHIB thrives on its fun and lighthearted nature. It also has a decentralized exchange called ShibaSwap, where users can trade and earn rewards. Plus, it’s part of a larger ecosystem that includes various projects and initiatives, making it more than just a simple currency. So, it’s like being part of a big, quirky family that loves to have fun while exploring the world of crypto!
Transparent and Credible Team
The report states that Shiba Inu was founded by an anonymous individual known as "Ryoshi," and that the lead developer is known as "Shytoshi Kusama". While the report provides details on their roles, the anonymity of the founder and the pseudonymous nature of the lead developer are points of concern, contrasting with the "example screening" reports that highlight named and verifiable teams. This lack of transparency impacts the credibility of the team, similar to the concerns raised in the ORDI screening.
Score: 40
Clear Use Case or Purpose
The report notes that Shiba Inu is primarily a meme coin, but with ambitions to build a wider ecosystem and be a competitor to Dogecoin. The report mentions use cases such as payment, DeFi, gaming, and NFTs. However, these use cases are not unique to SHIB, and there is a question of whether they are bona fide, as expressed in the "Islamic Scholars Opinions" on Shiba Inu. There is a clear intent to provide a use case, but this is somewhat undermined by its meme coin status, which conflicts with the guidance in the scoring guideline that a meme coin should not score highly on legitimacy.
Score: 37.5
Absence of Fraudulent Behavior
The report mentions third-party audits by Callisto Network and CertiK, which found no critical security issues. However, it also highlights warnings from the team about fake billion-dollar Shib wallet claims and scams involving a fake TREAT token. This mixed picture suggests that while security measures are in place, fraudulent activity is a significant concern, similar to the concerns raised in the ORDI screening regarding legitimacy.
Score: 40
Ethical Practices
The project emphasises community-driven governance and transparency in its token burn mechanism. However, there are also red flags such as the concentration of tokens in a single "whale" wallet and rising fraudulent activities targeting the Shibarium platform. This highlights a mixed approach to ethical practices, and the team have had to urge caution on a number of occasions due to scams, similar to the concerns raised in the ORDI report regarding ethical practices.
Score: 30
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Shiba Inu Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Shiba Inu Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Shiba Inu Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Shiba Inu Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Shiba Inu Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform