HALAL Screening Cryptocurrency
Is Fantom Halal?
Complete Shariah Compliance Screening of Fantom to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Fantom
FTM, or Fantom, is a type of cryptocurrency that operates on its own blockchain, designed to make transactions super fast and affordable. Think of it like a digital version of cash that you can use online, but with the added benefit of being able to run smart contracts—these are self-executing agreements with the terms directly written into code. This means developers can create decentralized applications (dApps) on the Fantom network, which can be anything from games to financial services, all without needing a middleman.
What makes Fantom unique is its focus on speed and scalability. It uses a special technology called Directed Acyclic Graph (DAG), which allows it to process thousands of transactions per second, way faster than many other cryptocurrencies. This means you can send and receive FTM almost instantly, making it super convenient for users. Plus, its low transaction fees make it an attractive option for both everyday users and developers looking to build innovative projects.
Transparent and Credible Team
The Fantom team is well-documented, with founders and key members like Ahn Byung Ik, Michael Kong, Andre Cronje and Quan Nguyen, whose backgrounds and roles are detailed. This indicates a transparent team with credible history.
Score: 85
Clear Use Case or Purpose
Fantom's whitepaper clearly explains its purpose as a fast, scalable, and secure platform for dApps using DAG technology and the Lachesis consensus protocol. This demonstrates a clear and legitimate use case.
Score: 90
Absence of Fraudulent Behavior
Fantom has undergone audits by Callisto Network and HashEx. While a low-severity issue was found by Callisto, no high or medium severity issues were identified. This suggests an absence of fraudulent behavior.
Score: 90
Ethical Practices
Fantom emphasizes decentralization, interoperability, and security. The project aims to comply with regulations, including KYC and AML guidelines. However, there have been some concerns about security vulnerabilities.
Score: 80
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Fantom 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.
Fantom 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
Fantom 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 Fantom Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Fantom Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform