HALAL Screening Cryptocurrency
Is ApeCoin Halal?
Complete Shariah Compliance Screening of ApeCoin to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is ApeCoin
APE is a cryptocurrency that’s part of the broader world of digital assets, and it’s closely linked to the popular Bored Ape Yacht Club (BAYC) NFT collection. Essentially, APE serves as a utility token within the ecosystem of BAYC, allowing holders to access exclusive events, merchandise, and other perks. It’s like having a VIP pass that not only represents ownership of a unique digital art piece but also opens doors to a community of like-minded enthusiasts.
What makes APE unique is its strong connection to the vibrant culture of NFTs and the community built around the Bored Apes. Unlike many other cryptocurrencies that focus solely on transactions, APE is designed to enhance the experience of being part of a creative and social group. It’s not just about trading; it’s about belonging to a fun and engaging community where members can participate in events, vote on future projects, and enjoy a sense of camaraderie. So, owning APE is like being part of an exclusive club that celebrates creativity and innovation!
Transparent and Credible Team
ApeCoin is managed by the ApeCoin DAO, which includes high-profile crypto investors. The initial council members are named and have relevant experience. However, there is no information on the transparency of the broader team, or other key members. There are also concerns about centralization.
Score: 70
Clear Use Case or Purpose
ApeCoin is presented as a governance and utility token within the APE ecosystem, with use cases such as access to events, merchandise, and metaverse transactions. The whitepaper outlines its purpose as an ERC-20 token for decentralized community empowerment. However, the tie to the Bored Ape Yacht Club (BAYC) ecosystem means that it has a meme coin element, which would reduce the score.
Score: 60
Absence of Fraudulent Behavior
ApeCoin has undergone code audits by CertiK, which identified some issues related to centralization and control flow but stated no user assets were at risk. There are also KYC and AML compliance measures in place. However, there are examples of scammers using fake ApeCoin airdrops.
Score: 75
Ethical Practices
ApeCoin's website and marketing present a professional image. The project emphasizes community-driven governance through the DAO. However, the strong association with NFTs and gaming could be seen as problematic.
Score: 65
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ApeCoin 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.
ApeCoin 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
ApeCoin 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 ApeCoin Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
ApeCoin Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform