Is Chiliz Halal: Is CHZ Halal?
What is Chiliz CHZ?
Chiliz (CHZ) is a sports and entertainment-focused cryptocurrency, powering the world’s first blockchain-based fan engagement & rewards platform, Socios.com. Fans are able to buy & trade Chiliz along with getting the opportunity to participate, influence, and vote in club-focused surveys & polls. Chiliz aims to foster a blockchain ecosystem that is used for sports and entertainment.
Founded in 2018 by Alexandre Dreyfus. Chilizis believes that the fans will have no impact on their favorite teams or players in the current sports and esports environment. However, there is the desire to activate fans as influencers. Chiliz aims to build a platform that enables users to vote on their favorite teams.
Chiliz raised $66 million through its Private Placement. Afterwards it was distributed to the earliest investors, and was also publicly listed on major cryptocurrency exchanges including Binance, BitMax and KuCoin.
Further details on Chiliz website
Who Invests In Chiliz?
Is Chiliz Halal: Is CHZ Halal? We’d Love to Hear Your Thoughts
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Chiliz has created its own permissioned sidechain of the Ethereum blockchain, which serves as the heart of Socios.com. This network hosts every team, league, course, or competitors who utilise the content on the associated platform, in addition to crowd-voting tools that run as an independent corporation on this blockchain.
Legitimacy Screening of CHZ
Considering a number of leading sports clubs have already adopted this platform to create fan token and also that their fans have embraced it, shows us that this is a legitimate project build on the blockchain. Therefore, in terms of legitimacy, Chiliz: CHZ has no issues.
Is Chiliz project aligned with Islamic values?
Yes, Chiliz project does align with Islamic values as its assists sports clubs to generate their own sports club tokens, improving an ecosystem’s securities exchange. The environment deployed its own infrastructure which consists of lots of sports clubs tokens.
Financial Screening of Chiliz:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. CHZ is not backed by any equity, so there is no financial screening required on this coin/ token. Here we would typically look at things like debt to income ratio to ensure borrowing is limited to a tolerable level.
CHZ Token Screening for Shariah Compliance
The Fan Token platform is a model for football and soccer clubs such as Juventus and Paris Saint-Germain. Socios.com is hoping that fifty of other teams from various sports activities will use Fan Tokens.
Chiliz tokens are used to buy fan tokens which is permissable so CHZ token is considered halal.
Is Staking CHZ Halal?
At the time of assement, there is no staking CHZ. However, in theory the method used by this protocol complies with Shariah principles, so staking CHZ could be Halal.
What Does The Muslim Crypto Community Think of CHZ?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks CHZ is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers CHZ: Chiliz as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
If you know of other academic or scholarly views on this, please add in comments and we will update accordingly. Alternatively, you may want to join our community of Muslims crypto investors and traders, to share, learn and profit from halal digital assets.
Is Chiliz Halal: Is CHZ Halal?
Yes, CHZ: Chiliz is Halal as its ecosystems serve as football arena clubs that gain token issuer and exchange platforms to swap FAN tokens. Holders get the reward, listings, and a variety of other advantages. There is no conclusive evidence that they partake in gambling in any way, so unless this changes CHZ is permissable.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.