HALAL Screening Cryptocurrency
Is MultiversX Halal?
Complete Shariah Compliance Screening of MultiversX to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is MultiversX
EGLD, or Elrond, is a type of cryptocurrency that powers the Elrond blockchain, which is designed to be super fast and efficient. Think of it like a digital currency that you can use for online transactions, but what makes it special is its ability to handle a massive number of transactions per second. This means you can send and receive money almost instantly, making it a great option for everyday use, like buying things online or transferring money to friends.
What really sets EGLD apart is its unique technology called "Adaptive State Sharding," which helps the network scale easily as more people use it. This means it can grow without slowing down, unlike some other cryptocurrencies that struggle when they get popular. Plus, Elrond focuses on being user-friendly, so even if you're not a tech expert, you can still enjoy the benefits of using EGLD without any hassle!
Transparent and Credible Team
Our research identifies the team members and founders as the Mincu brothers, Beniamin and Lucian, and Lucian Todea, with details of their experience. Beniamin Mincu is a known web3 entrepreneur, while Lucian Mincu has a background in engineering, and Lucian Todea has significant experience in tech startups and investment. This suggests a transparent team with credible history. Score: 80
Clear Use Case or Purpose
MultiversX aims to overcome the scalability limitations of other blockchains by using a state-sharded architecture and a Secure Proof of Stake (SPoS) consensus mechanism. It is designed to achieve high transaction speeds and low fees. This demonstrates a clear and legitimate use case. Score: 90
Absence of Fraudulent Behavior
The report notes the importance of smart contract audits and mentions that xAudits and Hackdra provide these services for the MultiversX platform. However, the report doesn't explicitly mention audits by regulatory bodies or cybersecurity firms. It also mentions some criticisms about exaggerated claims and past security issues. This lowers the score. Score: 70
Ethical Practices
The project emphasises security and has a detailed whitepaper. However, the report mentions past security issues and criticisms about exaggerated claims. There is no mention of involvement in any unethical activities. This is a point of concern and reduces the score. Score: 75
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MultiversX 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.
MultiversX 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
MultiversX 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 MultiversX Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
MultiversX Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform