HALAL Screening Cryptocurrency
Is Helium Halal?
Complete Shariah Compliance Screening of Helium to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Helium
HNT, or Helium, is a type of cryptocurrency that powers a unique network designed for Internet of Things (IoT) devices. Imagine a world where your smart devices, like weather sensors or smart meters, can communicate with each other without relying on traditional internet connections. Helium allows people to set up small wireless hotspots using their own devices, creating a decentralized network that helps these IoT devices connect. In return for sharing their internet connection, users earn HNT tokens, which can be traded or used within the Helium ecosystem.
What makes Helium special is its focus on building a community-driven network that’s both affordable and efficient. Instead of relying on big telecom companies, Helium encourages everyday people to contribute to the network, making it more accessible and widespread. Plus, the technology behind it, called LongFi, combines the best of both LoRaWAN (a low-power, long-range wireless protocol) and blockchain, ensuring secure and reliable connections for IoT devices. So, it’s not just another cryptocurrency; it’s a whole new way to connect devices and empower communities!
Transparent and Credible Team
The report identifies the co-founders (Amir Haleem, Shawn Fanning, and Sean Carey) and provides details about their backgrounds. This suggests a transparent team with relevant experience. Score: 80
Clear Use Case or Purpose
Helium aims to create a decentralized wireless network for IoT devices. The project has a clear purpose and a use case for a decentralised network. Score: 90
Absence of Fraudulent Behavior
While there are no third-party audits specifically verifying the HNT token, the report details security measures implemented such as ECC608 provisioning and network architecture using Helium Oracles. However, there are also SEC allegations of selling unregistered securities and making false claims about partnerships. Given these concerns, the score is reduced. Score: 65
Ethical Practices
The project aims for a decentralised network and transparent operations. However, there are concerns about the SEC allegations and some past marketing inaccuracies. This lowers the score. Score: 70
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Helium 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.
Helium 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
Helium 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 Helium Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Helium Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform