HALAL Screening Cryptocurrency
Is Gate Token Halal?
Complete Shariah Compliance Screening of Gate Token to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Gate Token
GT, or GateToken, is the native cryptocurrency of the Gate.io exchange, which is one of the popular platforms for trading various cryptocurrencies. Think of it as a special token that you can use on the exchange to get discounts on trading fees, participate in special events, or even earn rewards. It’s like having a VIP pass that gives you perks while you trade and invest in digital currencies.
What makes GT unique is its strong connection to the Gate.io platform and its community. The more people use the exchange, the more valuable GT can become, as it’s often used for various activities like voting on new projects or participating in token sales. Plus, Gate.io has a solid reputation for security and a wide range of cryptocurrencies to trade, making GT a handy tool for anyone looking to dive into the crypto world!
Transparent and Credible Team
The report identifies Dr. Han Lin as the founder and CEO of Gate.io, highlighting his background and experience. It also mentions Kevin Lee as Chief Business Officer. This suggests a transparent team with a credible history.
Score: 80
Clear Use Case or Purpose
GT is the native utility token of the Gate.io ecosystem, used for paying fees, staking, and unlocking exclusive benefits. It also provides trading fee discounts, access to exclusive token sales, and enables premium services. This demonstrates a clear and legitimate use case.
Score: 90
Absence of Fraudulent Behavior
Gate.io has undergone multiple security audits by Hacken, including a Proof of Reserves (PoR) implementation audit and an annual security assessment. These audits indicate efforts to ensure the legitimacy of the platform. However, the report also notes allegations of market manipulation and bankruptcy rumors, which warrants a slightly lower score.
Score: 75
Ethical Practices
Gate.io operates within regulatory frameworks, implementing KYC and AML procedures. The platform emphasizes transparency and has partnerships with companies like Oracle Red Bull Racing. However, concerns about market manipulation and bankruptcy rumors, as well as a lack of a clear governance structure, reduce the score.
Score: 70
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Gate Token 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.
Gate Token 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
Gate Token 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 Gate Token Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Gate Token Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform