HALAL Screening Cryptocurrency
Is SATS Ordinals Halal?
Complete Shariah Compliance Screening of SATS Ordinals to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is SATS Ordinals
SATS, short for Satoshis, are the smallest unit of Bitcoin, named after its mysterious creator, Satoshi Nakamoto. Just like cents are to dollars, SATS are to Bitcoin, with one Bitcoin being equal to 100 million SATS. This makes it easier for people to buy and sell smaller amounts of Bitcoin, allowing more folks to get involved in the world of cryptocurrency without needing to invest a whole Bitcoin, which can be quite pricey!
What makes SATS unique is that they represent a way to break down Bitcoin into more manageable pieces, making it accessible to everyone. This is especially cool because it allows people to participate in the Bitcoin economy, even if they can only afford a tiny fraction. Plus, as Bitcoin becomes more popular, the value of SATS can increase, giving people a chance to invest in something that could grow over time. So, whether you're just curious or looking to invest, SATS make it easy and fun to dip your toes into the crypto waters!
Transparent and Credible Team
The SATS Ordinals project is primarily associated with Casey Rodarmor, who introduced the Ordinals protocol. While Rodarmor's background is known, there isn't a formal team structure, which is different from traditional projects, and this has a minor impact on the score. There is no evidence that Rodarmor is not credible. Score: 70
Clear Use Case or Purpose
SATS Ordinals' primary use case is to create unique digital collectibles by inscribing data onto individual satoshis. This is similar to NFTs, but on the Bitcoin blockchain. Given that it is primarily a meme coin, the score is halved. Score: (75/2)
Absence of Fraudulent Behavior
The project utilizes the Bitcoin blockchain, which is secure and decentralised. The open-source nature of the project also allows for community review. There is no mention of rug pulls or scams in the sources. However, there is a lack of formal audits. Score: 75
Ethical Practices
There are no explicit unethical practices, but the project is community-driven, which can be a strength or weakness regarding ethical practices. There is also a lack of transparency, as there is no formal team, or specific compliance measures mentioned in the sources, and no financial audits. The meme coin status of SATS brings into question the ethical alignment, which has an impact on the score. Score: (65/2)
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SATS Ordinals 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.
SATS Ordinals 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
SATS Ordinals 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 SATS Ordinals Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
SATS Ordinals Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform