HALAL Screening Cryptocurrency
Is Dogecoin Halal?
Complete Shariah Compliance Screening of Dogecoin to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Dogecoin
Dogecoin, or DOGE, started as a fun and lighthearted cryptocurrency featuring the Shiba Inu dog from a popular meme. It was created in 2013 as a joke, but it quickly gained a loyal following. Unlike Bitcoin, which is often seen as a serious investment, Dogecoin is more about community and fun. People use it for tipping content creators online, making small transactions, or just for the joy of being part of a quirky movement.
What makes Dogecoin unique is its friendly vibe and strong community support. It has a low transaction fee, making it easy to send small amounts of money without breaking the bank. Plus, it has a large supply, meaning you can own a lot of it without spending a fortune. The combination of its meme origins, active community, and accessibility has turned Dogecoin into a beloved cryptocurrency that many people enjoy being a part of!
Transparent and Credible Team
The Dogecoin team includes co-founders Billy Markus and Jackson Palmer, as well as advisors such as Jared Birchall, Vitalik Buterin and Ross Nicoll. While their roles are defined, Markus and Palmer are no longer actively involved in development, and Palmer is critical of the crypto industry. This impacts the credibility score.
Score: 60
Clear Use Case or Purpose
Dogecoin was initially created as a meme coin, and its core design is for peer-to-peer transactions. It has gained some traction as a means of payment and for charitable causes, but its primary function as a meme coin impacts the score.
Score: 55
Absence of Fraudulent Behavior
Dogecoin has undergone third-party audits, including one by Callisto Network which identified a low-severity issue and two owner privileges. Halborn researchers discovered critical vulnerabilities in the open-source codebase. There is no direct evidence of fraudulent activity, but the identified vulnerabilities and the lack of a central authority raise some concerns.
Score: 65
Ethical Practices
Dogecoin is community-driven with a focus on charitable activities. However, there are concerns about price manipulation and a lack of accountability. Additionally, Elon Musk's promotions and the speculative nature of the coin raise ethical questions.
Score: 50
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Dogecoin Halal Project Screening
- Are the project’s purpose and operation Shariah Compliant.
- Does the project operate ethically and transparently, without harm to society.
- Does the project promote positive societal or environmental outcomes.
Dogecoin Financial Screening
- Does the revenue involve Riba (interest), Gharar (excessive uncertainty), or Haram activities.
- What red flags are hidden within the projects finances and are within permissible limits.
- Types of revenue generation activities and the percentage that may be Riba or interest based.
- Audits from reliable sources
Dogecoin Token Screening
- Is the Token governance fair and ethical?
- Are profit-sharing mechanisms (e.g., staking rewards, dividends) compliant with Islamic Finance?
- Does the token’s design, or unlock schedule raise unethical concerns?
- Halal underlying asset, and free from impermissible elements
Is Staking Dogecoin Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Dogecoin Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform