Is Icon Halal: Is ICX Halal?

What is ICON?

The ICON Project is building a decentralized network that will facilitate independent blockchains with different governances to transact with one another without intermediaries.

The team of ICON drills into the idea that there are significant benefits of blockchain technology that aren’t limited to financial services. ICON wishes to build upon this potential, and their goal is to encourage future development and usage of decentralized, consensus-based, block-chain technologies.

ICON intends to support a platform for interconnected blockchains being built on the ICON Protocol, their website explains. It aims to act as a connector for a large network of blockchains with disparate governance arrangements, like the Internet that connects computers using a shared communication layer.

More details on Icon website

Who Invests In ICON?

Moonchain Capital

Myriad Capital Management

Pantera Capital

RocketFuel

TaaS Fund

Torchlight Ventures

YouBi Capital

Icon Technology

ICON’s “network of blockchains” will be achieved by Nexus, a blockchain platform that enables self-contained blockchains to interact with each other in cross-chain transactions. In the same way, ICON analogizes Nexus to the SWIFT banking connection protocol.

The currency that powers the ICON ecosystem is ICX. ICX has a variety of applications, including staking, governance, use on DeFi platforms, and more.

Legitimacy Screening of ICX

Icon has a legitimate product, built using blockchain technology and has public roadmap showing its development plans. This gives us the confidence to confirm that ICX 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 Icon project aligned with Islamic values?

Yes, Icon project does align with Islamic values as the project gives developers the opportunity to build dapps on their network that can easily communicate with Ethereum and Polkadot. The project appears to be neutral and offers no services against Islamic values.

Financial Screening of Icon:

Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Icon 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.

ICX Token Screening for Shariah Compliance

ICX tokens (ICX) are native to Nexus and transferable between blockchain-based payment networks, namely the BTP network. In addition, ICON also supports an ICX-based decentralized exchange (DEX) that supports the exchange of different native assets on the ICON network.

ICX token is used as a medium of exchange so the ICX token is considered halal.

Is Staking ICX Halal?       

The staking method used by this protocol complies with Shariah principles, so staking Icon: ICX is Halal and permissable.

What Does The Muslim Crypto Community Think of ICX?           

Sharlife considers Icon: ICX as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.

Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Icon: ICX is a Halal digital asset based on its 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 Icon Halal: Is ICX Halal?

Yes, Icon: ICX is Halal and the entire project aligns with Shariah guidelines. Like other blockchain projects, assists developers to build dapps under its network. As far as we have seen there are no Difi applications as yet so everything within this cryptocurrency 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.