HALAL Screening Cryptocurrency
Is Ribbon Finance Halal?
Complete Shariah Compliance Screening of Ribbon Finance to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Ribbon Finance
RBN, or Ribbon Finance, is a cryptocurrency that focuses on making options trading more accessible and efficient for everyone. Think of it like a platform where you can buy and sell options, which are contracts that give you the right to buy or sell an asset at a specific price. Ribbon Finance simplifies this process by using smart contracts on the blockchain, allowing users to earn income from their crypto assets while managing risks in a more straightforward way.
What makes RBN unique is its innovative approach to decentralized finance (DeFi). It combines traditional finance concepts with blockchain technology, enabling users to create and manage their own investment strategies without needing a middleman. Plus, it offers features like automated options strategies, which can help users maximize their returns while minimizing potential losses. So, if you're looking to dip your toes into options trading in a user-friendly way, RBN could be a great option!
Transparent and Credible Team
The report identifies Julian Koh and Ken Chan as key figures, detailing their backgrounds and experience in the cryptocurrency space. This suggests a transparent team with relevant experience. Score: 80
Clear Use Case or Purpose
Ribbon Finance aims to provide users with access to structured crypto products and investment strategies. It focuses on sustainable yield generation through derivatives, rather than speculative incentives. This indicates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
Ribbon Finance has undergone audits by OpenZeppelin, and other firms like ChainSafe and Peckshield. Although the OpenZeppelin audit highlighted areas for improvement, the fact that audits were conducted suggests an effort to ensure legitimacy. There is no evidence of rug-pulls or scams. Score: 85
Ethical Practices
Ribbon Finance aims to generate sustainable yields using derivatives. The platform emphasizes the importance of only risking funds that users can afford to lose, and is audited by reputable firms. However, there is no specific compliance program unique to the cryptocurrency space. Score: 75
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Ribbon Finance 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.
Ribbon Finance 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
Ribbon Finance 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 Ribbon Finance Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Ribbon Finance Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform