Is Nem Crypto Halal: Is XEM Coin Halal?
In this article we do a complete shariah screening of Nem Crypto to determine if XEM is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in XEM coin, but have a read and let us know your thoughts.
What is Nem or XEM?
NEM, or the (New Economy Movement), is attempting to create a smart and more technologically advanced blockchain, positioning itself as an alternative to just an altcoin, and not just another blockchain. NEM, which calls itself the smart asset blockchain, is a technology system that strives to be an efficient way to store assets and data quickly and inexpensively.
We couldnt actually find a website for nem, just nem.io which redirects to Axie Infinity and their community forum which hasnt been updated since 2019? Maybe they’ve done a runner? Let us know in the comments if you know more, but this last update seems to be around the time the organisation almost went under as detailed here
Perhaps find another coin to invest in that hasn’t declined almost 98% from its all time high from January 2018? Having said that, it still maintains about $40M trading volume so a significant amount of interest so if you’re a fan, please read on.
Who Invests In NEM?
ChainFunder
Is Nem Crypto Halal: Is XEM Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
NEM Technology
NEM network uses the Proof of Importance (PoI), which strives to eliminate a number of characteristics that NEM does not like from PoW and PoS. PoI uses a time and stake-based network incentive that sets a minimum amount of coins needed to begin “harvesting” new coins and requires continual significant investment of new coins to maintain the minting new coin.
NEM is capable of handling all digital assets, loans, contracts, documents, and other files which makes it incredibly versatile.
Legitimacy Screening of NEM
NEM forked the NXT blockchain in March 2015, and a Singapore nonprofit organization named the NEM Foundation is its owner. Following the fork, NEM decided that it would develop its own codebase for greater scalability and faster functionality than the NXT. This gives us the confidence to confirm that NEM 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 NEM project aligned with Islamic values?
Yes, NEM: XEM project does align with Islamic values as its a technology play to try and open up blockchain tech for the masses. There is nothing against Islamic guidelines with this objective.
Financial Screening of NEM:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. NEM 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.
XEM Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments
NEM has its own cryptocurrency, called XEM. XEM is not widely used as a means of payments as bitcoins are, but still XEM managed to get to the top 20 crypto space back in 2019. However it has been steadily declining and currently sits at #85, as of July 2022.
Is Staking NEM: XEM Halal?
There is no staking XEM at the time of assessment so this does not apply.
What Does The Muslim Crypto Community Think of NEM?
Sharlife considers NEM: XEM coin as a halal cryptocurrency based on the five areas assessed for Shariah complaince screening.
Islamic Finance Guru (IFG) believes NEM: XEM is a halal cryptocurrency based on its method of Shariah complaince screening.
Marhaba DiFi‘s Shariah governance board also beleives NEM: XEM coin is halal.
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks NEM: XEM coin 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 NEM Halal: Is XEM Coin Halal?
Yes, NEM: XEM coin is Halal as it aims to develop a better blockchain and planned to do so by employing two fundamental concepts of proof-of-importance (POI) and harvesting. There is nothing against Shariah within this project so Muslims may invest, trade and stake XEM coin.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.
[…] The Symbol blockchain network is a value-exchange network that aims to provide a credible and secure structure. Symbol strives to stimulate the growth of enterprises, developers, organizations, and individuals to improve the yields of business and to increase cooperation. The Symbol platform is built on the strengths of the NEM Group and aims to share it with more technological excellence, simplicity, and robust belief, but with more functionality, flexibility, speed, and ease of operation. NEM Group is a smart asset blockchain network and you can find our Shariah screening of Nem here. […]