In this article we do a complete Shariah screening of Symbol to determine if XYM is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in XYM, but have a read and see if you are comfortable with our assessment first.
What is Symbol Crypto?
Symbol (XYM) is a next-generation, open-source, decentralized blockchain-based platform that allows businesses and individuals to connect using blockchain technologies. The platform aims to support businesses in identifying and eliminating challenges that might reduce value.
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.
The Symbol network also aims to address the challenges businesses and individuals face, such as the problem of lack of trust affecting the progress of innovation, value loss, and exploitation. The Symbol network is seeking to overcome this difficulty by developing an approach that is focused on solving this issue, establishing and maintaining economic value.
Symbol is leveraging business, blockchain, and people by creating a platform to give a safe environment for businesses, government, and individuals to connect. The platform makes it possible for all individuals to access the system, speed up transactions, and support document exchanges and security. Symbol is also adding more security, interoperability solutions, and improved system performance to its platform.
Further details on Symbol website
Is Symbol Halal: Is XYM Crypto Coin Halal? We’d Love to Hear Your Thoughts
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Parallel blockchain is not the only enhancement for the new blockchain released, but it also features improvements to the previous through DeFi abilities, NFT support, benefit staking, and more. XYM crypto pays transaction fees to incentivize validators, which process and record payments.
Symbol has been in development for more than a decade, billed as one of the next-generation blockchains. It uses the less energy-intensive proof of stake (PoS) consensus mechanism and enables users to generate tokens and digital assets. However, its initial goal is to create a digital security token marketplace, and to that end, it works to enable the construction of security-token offerings (STOs) and regulated assets. Its founders envision an interconnected crypto marketplace, and thus they enabled the creation of digital assets that function as security tokens.
Open-source code that is available for any user boasts leading security and scalability. NEM created Symbol using a hybrid chain architecture to support both public and private blockchains. Individuals and businesses alike can profit from the ease of this publication’s blockchain, which makes it simple to implement service and user-friendly design. Symbol provides the best of both worlds with reduced expenses, heightened transparency, and maximum security and confidentiality. This meets all these needs without compromising performance or accuracy quite as much.
An intelligent network administrator can use blockchain-based solutions and other layered platforms to make secure applications that can be easily integrated into a larger system. Symbol supports more than 100 different configurations and allows for atomic swaps and mosaics, which are non-fungible tokens that can represent any asset or value. Mosaics have their own individual identifiers and can be fully configured and customized according to user needs. Users can create DeFi services, Security Token Offerings, and their own native currencies with Mosaics.
The network’s features and enhancements have been enhanced from the original NEM blockchain. They include customizable multi-signature accounts and delegated financial permissions. Similarly, The Symbolic code incorporates transaction functionalities through plug-and-play components and layered architecture.
Legitimacy Screening of Symbol Crypto
The Symbol platform was released by The NEM Foundation on March 17, 2021. Erik Van Himbergen, Jeff McDonald, Leon Yeoh, and Lon Wong are the founding members of the foundation. NEM Foundation is a Singapore-registered company that operates internationally.
This gives us the confidence to confirm that Symbol 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 Symbol project aligned with Islamic values?
Yes, Symbol’s crypto project does align with Islamic values as it is built specifically to run the NIS1 chain. The Symbol network promises to facilitate liquidity, cut transaction charges, and supply swift processing. There is nothing against Islam about such a technology.
Financial Screening of Symbol:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Symbol 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.
XYM Token Screening for Shariah Compliance
Token Type: Native
Token Uses: Payments
The XYM token is the native token on the platform. The primary intention of the token is to incentivize users of the platform to do transactions and pay various advocates. The system operates on the basis of a proof-of-stake consensus mechanism, a basic variant of which has already been in existence. PoS values nodes according to the size of their stake and the operator’s stake.
The platform features several versatile tools designed to shorten procedures, including multi-signature, multi-layered accounts. Bearers that are participants of the Titan system can turn bearer digital assets into representational tokens (NFTs), shares, or signatures.
This token has a utility that is permissable under Shariah so Symbol’s XYM token is considered halal.
Is Staking XYM Halal?
Much like other blockchain ecosystems, the Symbol public chain features Node Operators, Users, Investors, and a native token. However, there are certain distinctions that make it easier for Symbol system users to earn rewards. For example, stakers gain rewards by either holding a predefined balance or by serving as nodes.
The system has a hybrid trust mechanism, with data flowing freely crossing both public and private chains with transparent interoperability. As far as we can see this reward mehanism does not contain Riba, Gharar, or Maisir and therefore staking XYM is halal.
What Does The Muslim Crypto Community Think of XYM?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Symbol: XYM coin is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Symbol: XYM 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 Symbol Halal: Is XYM Crypto Coin Halal?
Yes, Symbol: XYM crypto coin is Halal as it is It is the spiritual successor to NEM and resembles it in several respects. It operates with proof-of-stake-plus (PoS) rules, mosaics, namespaces, multisignature accounts, and aggregate transactions. This technology is not against Shariah guidelines so Muslims may invest, trade and stake XYM crypto coin.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.