Is Verge Halal: Is XVG Coin Halal?
In this article we do a complete shariah screening of Verge: XVG Coin to determine if it is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in XVG crypto, but please read on to find out why.
From investing, trading to staking, we’ve got your halal crypto investments covered.
What is Verge?
Among consumers and developers as early as 2013 and 2014, demand for anonymous cryptocurrencies rose as cryptocurrency enthusiasts became increasingly dissatisfied with albeit legitimate concerns about the lack of privacy in public on-chain bitcoin payments. In September 2014, in a bid to address this problem, Dogecoin Dark was created with the mission of maximum anonymity and true decentralization.
Two years after formation “Dogecoin Dark” was rebranded as Verge.
Further details on Verge website
Who Invests In Verge?
Seed Venture Capital
Is Verge Halal: Is XVG Coin Halal? We’d Love to Hear Your Thoughts
Sharing the collective wisdom of thousands of Muslim crypto traders and investors.
Verge investors have the ability to use Wraith protocol software in the Verge core wallet as a toggle switch allows users to choose a mode to send money with total privacy, either via the Verge on-chain network or via Stealth addressing.
This choice permits users to make decisions to initiate a single-chain transaction or the Enigma-style transaction model utilizing a Monero-like level of privacy.
Verge’s default wallet uses the Tor message encryption tool to hide the content of unencrypted information messaging.
Verge supports atomic swaps as well, which reflects their goal of a controlled decentralization by allowing cross-chain value transfers (or swaps) between chains that both support atomic cross-chain trading without the need for a trusted third party to monitor and arbitrate the exchange. For Verge, this is accomplished by implementing BIP65 Check Lock Time Verify (CLTV).
Legitimacy Screening of Verge
Founded in 2014 Verge is fairly early and stable network. This gives us the confidence to confirm that XVG 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 Verge project aligned with Islamic values?
Yes, Verge: XVG project does align with Islamic values as the project is similar to Bitcoin, in that it allows users to may and receive payments using blockchain technology. It has a public roadmap, published team, and community support making it a compelling and well-accepted digital currency. Nothing in the project is against Islamic ruling.
Financial Screening of XVG:
Financial screening ensures that the crypto asset meets the financial criteria for Shariah compliance, if it is an equity based token. Verge: XVG 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.
XVG Token Screening for Shariah Compliance
Token screening is fairly simple in this case as its comparable to Bitcoin and so should be cinsidered permissable.
Is Staking XVG Coin Halal?
Yes, staking Verge: XVG could be Halal. However, at the time of assessment there is no staking of XVG. Instead, the project uses Proof of Work mechanism to validate the network.
What Does The Muslim Crypto Community Think of XVG?
Crypto Halal Office for Monitoring and Sharia auditing on cryptocurrency markets thinks Verge: XVG is a Halal digital asset based on its Shariah complaince screening.
Islamic Finance Guru (IFG) believes Verge: XVG as a halal cryptocurrency based on its method of Shariah complaince screening.
Sharlife considers Verge: XVG 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 Verge Halal: Is XVG Coin Halal?
Yes, Verge: XVG coin is Halal as it is a currency designed for people and general use. It aims to fulfill its primary goal of providing people with a fast, efficient and decentralized means of making direct financial transactions, and it does so based on the Bitcoin blockchain. Verge does not have anything that contradicts Islamic rulings so Muslims may trade and invest and stake in XVG.
We hope you found this useful. Please view our Halal Crypto List to find suitable digital asset investments, without compromising your Islamic faith.
About the Verge.
Is it really halal after reading this I sell it immediately with lost.
Maybe a update that it is haram?
Read the link below.
Verge is a privacy coin that claims to offer completely anonymous transaction. It’s main value proposition is to allow users to send and receive payments without disclosing the personal details. Naturally this type of privacy project will attract those that want to remain hidden or keep some of their activity hidden. The sex industry, drugs, money laundering, tax evasion etc all appear to be a good fit in principle, but does this make the crypto haram? Possibly, but please hear me out…
As the article you shared states users of sites like PornHub don’t want to use credit cards through fear of scammers (I guess) or even being disclosed on bank statements. However, before this partnership was announced, users were paying for these sites with paypal, credit/ debit cards (which they fund using cash). Does this mean, cash is haram because it is used to access haram websites? Or is the haram website itself haram regardless of the type of money (credit card, debit card, paypal, verge) used to access it?
Our opinion, for the time being is that Verge is halal as it is a completely separate organisation. If Verge had ownership in Pornhub then it’s a very different situation and would of course be considered haram. As we understand it, this partnership is equal to having a new payment processor on a website, like Stripe. A service (to pay privately) is offered for a fee.
Bitcoin is used widely across the dark web and on many haram sites and activities, but the general view within crypto community is that it is halal, for the same reason stated above.
Hope this helps.