Is Cosmos Halal: Is ATOM Halal?
In this article we do a complete shariah screening of Cosmos cryptocurrency, to see if ATOM coin is halal or haram. The short answer is yes, Cosmos is halal and Muslims may invest, trade and stake ATOM, but please read on to find out why. Including opinions from 3 different sources.
What is Cosmos ATOM?
Cosmos is a blockchain-based network of interconnected networks modeled on TCP/IP that exchange information securely. The Cosmos Hub, also known as “Gaia,” is a proof of stake chain with a native token, ATOM, that serves as the hub for the running of packet routing for IBC blockchains.
Cosmos is striving for rapid scaling, adoption, and use-case experimentation of blockchains by combining the capacities of free, dependable, decentralized blockchains, time-delivered record-keeping, and open-source software. Accordingly, PoW chains can experience defects attributable to the limitations of performance and ad hoc governance.
According to Cosmos, the solution with the greatest potential value would be a tool that could interact with multiple parallel blockchains.
Further details on Cosmos website
Who Invests In Cosmos?
Is Cosmos Halal: Is ATOM Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Cosmos is designed as a network of interdependent zones and hubs. Zones are distinct blockchain applications with their own internal control and governance architecture. Hubs are intermediate chains that observe the state of connected zones and facilitate asset transfer among them. Cosmos is not a specific blockchain but simply a toolkit to design new chains.
Legitimacy Screening of ATOM
Cosmos has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that ATOM has an underlying fundamental value, that can be considered as “Mal” under Islamic rulings. Therefore, as a project it has legitimacy in terms of Shariah.
Is Cosmos project aligned with Islamic values?
Yes, Cosmos: ATOM project does align with Islamic values as the project offers a toolkit to design new chains, which is not against Islamic ruling.
Financial Screening of ATOM:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Cosmos 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.
ATOM Token Screening for Shariah Compliance
The native token for Cosmos Hub, the PoS blockchain of Cosmos Hub, is ATOM. Any validator on the PoS consensus mechanism of Cosmos Hub must hold ATOM to successfully participate in the consensus process. The purpose of ATOM is securing the PoS consensus mechanism for Cosmos Hub and the network.
Based on this the token is permissable so Cosmos: ATOM token is considered halal.
Is Staking ATOM Halal?
Yes, staking Cosmos: ATOM is Halal. ATOM owners may stake tokens to ensure security on the Cosmos network, and the funds are distributed for validation like any other validator. The token is also required for participating in governance within Cosmos Hub. ATOM owners can delegate their tokens or get involved in governance by holding ATOM in their personal IOs.
This method of staking is permissable and in line with Islamic law.
What Does The Muslim Crypto Community Think of ATOM?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Cosmos: ATOM is a Halal digital asset based on its Shariah complaince screening.
Islamic Finance Guru (IFG) believes Cosmos: ATOM is a halal cryptocurrency based on its method of Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives Cosmos: ATOM is a halal crypto.
Sharlife considers Cosmos: ATOM 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 Cosmos Halal: Is ATOM Halal?
Yes, Cosmos: ATOM is Halal as its operates like other networks that operate in its category. Cosmos is used by many developers to make smart contracts and build Dapps. Emeris, a DeFi exchange platform, has been developed by Cosmos. Emeris seems to be clear as they provide only token flows and liquidity pools so not against Shariah.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.