Is Telcoin Halal: Is TEL Crypto Halal?
In this article we do a complete Shariah screening of Telcoin to determine if TEL is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in TEL, but have a read and see if you are comfortable with our assessment first.
What is Telcoin?
Telcoin, a Singapore-based firm, was founded in 2017 with the aim of wiring money in an effective, simple way. The international fee structure is a challenging issue in the current financial sector, but Telcoin is planning to overcome it.
It is no surprise that the remittance industry is at Telcon s top priority, a place where it is interested in providing an alternative to Western Union. It supports multiple e-wallets and other mobile money businesses with the aim of partnering with major telecom providers like AT&T and Verizon.
By partnering with a number of e-wallet and telecom corporations, Mobilecre It uses its expertise to make the process of mobile money transfers easier and more widespread. Telcoin believes the team behind the company is perfectly matched for creating the most user-friendly way of sending money
Further details on Telcoin website
Is Telcoin Halal: Is TEL Crypto Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Telcoin is built on the Ethereum blockchain and makes use of its best characteristics to its own advantage. Rather than having validators or other types of check phrases for transactional consistencies, it uses the PoC (Proof-of-Concept) approach. As a result, prior to validating any transaction, it makes sure that it has some kind of real-world applicability.
The Telcoin network features three components, telecommunications companies, and the customers who use it. It operates the wallets for transfer to the network, and it implements the network itself. Decentralized blockchain digital currencies are also subject to full ownership and absolute control of the users.
A token owner can choose to initiate a direct transfer from their Telcoin account to an account belonging to a different token owner. These transactions, however, require at least two Private Keys to be executed. Telcoin’s security architecture requires this. The user can increase the where one may be entered should they decide so. This setting is known as a multi-signature model and is often used in a system where the utmost level of security is put in place.
Telcoin’s network distributes Telcoin-tokens (TEL) to network operators as rewards. The higher the number and level of Telcoin integration a telecommunications provider has, the more Telcoin tokens this provider receive. In order to retain the network security service, they pay for the TEL distribution.
Legitimacy Screening of Telcoin
Telcoin was founded in 2017 using the blockchain technology. Its founder was Claude Eguienta, and also its CEO was Paul Neuner. It is located in Singapore and has expanded all over the world since.
Mobile telecommunications is the largest business sector that claims over 5.2 billion registered mobile telecoms. Because of their high usage and willingness to use financial services, the grouped together consumers of telecoms are unique. This is evident in how companies in the mobile payments industry have grown rapidly, exceeding the 1.2 billion user mark and generating over $2 billion in daily transaction volume.
This gives us the confidence to confirm that Telcoin 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 Telcoin project aligned with Islamic values?
Yes, Telcoin crypto project does align with Islamic values as it’s primary purpose to act as a bridge between the fiat and crypto markets by making use of blockchain technology and allowing users to transfer money internationally. By using phone numbers, V3 model of Telcoin integrates their network with the DeFi protocol to make transfers easier. There is nothing against Islam about such a technology.
Financial Screening of Telcoin:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Telcoin 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.
TEL Token Screening for Shariah Compliance
Token Type: ERC-20
Token Uses: Payments
Telcoin is a decentralized cryptocurrency, an ERC-20 token created for use on the Ethereum blockchain. TEL is Telcoin’s native currency, and it functions as a medium of exchange for payments.
TEL has been listed on various crypto exchanges providing a large selection of cryptographic coins. There’s no alternative to buy tokens directly, as with other cryptocurrencies. Before you buy TEL, you’re likely to need another cryptocurrency and exchange it for TEL tokens.
Once you buy TEL tokens, you can transfer them to whatever wallet is suitable in pursuing a function with the system from which the tokens were purchased. Almost all Ethereum-compatible wallets can handle Telcoin, so you can conveniently transfer the token to and from any associated wallet.
This token has a utility that is permissable under Shariah so Telcoin’s TEL token is considered halal.
Is Staking TEL Halal?
Staking can only be made via third party protocol. As far as we can see this reward mehanism does not contain Riba, Gharar, or Maisir and is therefore halal, but may require further work to assess the actual third parties involved.
What Does The Muslim Crypto Community Think of TEL?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Telcoin: TEL coin is a Halal digital asset based on its Shariah complaince screening.
Sharlife considers Telcoin: TEL 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 Telcoin Halal: Is TEL Crypto Coin Halal?
Yes, Telcoin: TEL crypto coin is Halal as it is a mobile remittance network which operates on top of Ethereum. It aims to compete with existing remittance providers by providing low-cost services directly through mobile carriers. This technology is not against Shariah guidelines so Muslims may invest, trade and stake TEL 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.