HALAL Screening Cryptocurrency
Is FLOKI Halal?
Complete Shariah Compliance Screening of FLOKI to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is FLOKI
FLOKI is a cryptocurrency that was inspired by Elon Musk's Shiba Inu dog, named Floki. It’s part of a growing trend of meme coins, which are digital currencies created mostly for fun and community engagement rather than serious financial applications. FLOKI aims to combine the playful spirit of meme culture with real utility by offering features like a decentralized marketplace, educational resources, and even a gaming platform. So, it’s not just about trading; it’s about building a community and providing fun experiences for its users.
What makes FLOKI unique is its strong community focus and the way it blends entertainment with practical uses. Unlike many other cryptocurrencies that can feel a bit dry or technical, FLOKI embraces a lighthearted approach while still aiming to create real value. The project also emphasizes charity and social impact, which adds a feel-good factor to being part of the FLOKI community. So, it’s like being part of a fun club that’s also trying to make a difference!
Transparent and Credible Team
The team is pseudonymous, but the lead developer, Jackie Xu, has a credible background. There's also mention of active community involvement. While not fully transparent, there's some credibility, however the pseudonymous nature will lower the score. Score: 60
Clear Use Case or Purpose
FLOKI aims for financial decentralisation, crypto education, NFT and metaverse projects, and charity work. It also has the Valhalla game, FlokiPlace marketplace and Floki University which give it a clear use case. However the Islamic scholars' opinions suggest that meme coins have a questionable utility. As a meme coin, this use case is arguably questionable. Score: 37.5
Absence of Fraudulent Behavior
Third-party audits by SourceHat and Certik are mentioned, which is positive. There's also regulatory compliance and surveillance. However, the project itself has warned against fraudulent tokens. There is a warning about a scam alert in Cointelegraph , and this will lower the score. Score: 70
Ethical Practices
The project supports charitable initiatives and has a whitepaper outlining its goals. However, there are concerns about the owner's significant control, a lack of transparency around the team, and the fact that it is a meme coin. The project does not claim guaranteed returns, which is good. The sources also mention that the project had to address regulatory concerns, indicating it is trying to operate ethically, but the concerns are enough to justify a lower score. Score: 45
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FLOKI 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.
FLOKI 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
FLOKI 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 FLOKI Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
FLOKI Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform