Is Iotex Halal: Is IOTX Coin Halal?

In this article we do a complete shariah screening of Cosmos: ATOM cryptocurrency. From investing, trading to staking, we’ve got your halal crypto investments covered.

What is IoTeX: IOTX Coin?

IoTeX is working to build a connected world where any device and person has access to their personal data, devices, and identity. IoTeX is leveraging blockchain to enable smart devices to share data and to create a new generation of Dapps and digital assets.

IoTeX is the cutting edge of the dapto market, delivering an ultra-secure, lightning-fast blockchain-based network that connects real-world data to on-chain apps for the first time ever. Combining innovations in blockchain, hardware, oracles, and ID, IoTeX forms a trustworthy foundation for your next breakthrough venture.

Further details on IoTeX website

Who Invests In IoTeX?

Hash Capital

HashKey

INBlockchain

Kenetic Capital

Kosmos Capital

LinkVc

NEO Global Capital

ONEBOAT Capital

IoTeX Technology

IoTeX’s blockchain-based architectural structure generally acknowledges the power of separation of duties, which creates efficiency and privacy for IoT-related distributed ledger applications, or blockchains. There are distinct blockchains running on the same main branch, but they are each and remain interoperable with one another at all times.

The root blockchain does not share the risk for failure of subchains. Subchains that operate around the same time, such as IoT functions, are also interoperable with the underlying root blockchain, but it’s not as vulnerable to root chain failures.

Legitimacy Screening of IoTeX

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

Yes, IoTeX: IOTX 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 IOTX:

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

IOTX Token Screening for Shariah Compliance

The native currency of the IoTeX Network is IOTX. Becoming a stakeholder in the IOTX Network allows you to take part in governance of the network. Anyone may delegate, buy, sell, and trade IOTX through the many IoTeX dapps, devices, and markets.

Based on this the token is permissable so IoTeX: IOTX token is considered halal. 

Is Staking IOTX Halal?       

Yes, staking IoTeX: IOTX is Halal. IoTeX incentivizes third-party service providers to purchase consent to offer their facilities and services through the network. These service providers must stake IOTX to purchase this permission. Service level agreements would also be defined by the service providers and failure to meet quality guidelines specified by the SLA would lead to reduction in stake.

This method of staking is permissable and in line with Islamic law.

What Does The Muslim Crypto Community Think of IOTX?           

Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks IoTeX: IOTX is a Halal digital asset based on its Shariah complaince screening.

Sharlife considers IoTeX: IOTX 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 IoTeX Halal: Is IOTX Halal?

Yes, IoTeX: IOTX is Halal as blockchain technology is utilized to safeguard the private information stored by the IOT ecosystem. IOTX tokens just serve as holders of these values and therefore there is nothing against Shariah guidelines with this project. 

We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.