HALAL Screening Cryptocurrency
Is Toncoin Halal?
Complete Shariah Compliance Screening of Toncoin to determine if it is a Halal or Haram cryptocurrency
Legitimacy Screening
What is Toncoin
TON, or The Open Network, is a blockchain platform that was originally developed by the team behind the popular messaging app Telegram. It aims to create a fast and scalable network for various applications, including payments, decentralized finance, and even social media. What makes TON unique is its ability to process millions of transactions per second, which is way faster than many other blockchains. This speed is achieved through a multi-blockchain structure, allowing different chains to work together seamlessly.
Another cool feature of TON is its focus on user-friendliness. It’s designed to be easy to use, even for people who aren’t tech-savvy. For example, it allows users to send and receive cryptocurrency using simple usernames instead of complicated wallet addresses. Plus, it integrates well with Telegram, making it super convenient for millions of users already familiar with the app. Overall, TON is all about making blockchain technology accessible and efficient for everyone!
Transparent and Credible Team
The report identifies key team members and founders, including Pavel Durov, Nikolai Durov, and other contributors, with credible backgrounds. The project's origins with the Telegram team is also mentioned, adding to its credibility. Score: 90
Clear Use Case or Purpose
The whitepaper outlines Toncoin’s purpose as a medium of exchange, supporting dApps, and enabling staking and governance. It also mentions use cases in supply chain management, IoT, remittances and gaming. This demonstrates a clear and legitimate use case beyond speculation. Score: 90
Absence of Fraudulent Behavior
The report mentions audits by CertiK and Cyberscope, a bug bounty program, and the use of blockchain explorers for verification. There is also mention of a partnership with Elliptic for risk management and to screen wallet addresses. There is a mention of scams associated with Toncoin, but these are not attributed to the project itself. Score: 85
Ethical Practices
The project aims for decentralisation, transparency and compliance. The report notes that Toncoin is considered halal for investment by some scholars particularly when used as a long term asset. The report also mentions the use of smart contracts for transparency and to reduce fraud. There are some concerns raised about the token lock up which could potentially lead to centralisation. Score: 75
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Toncoin 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.
Toncoin 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
Toncoin 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 Toncoin Halal?
- Are the staking operation aligned with Shariah-compliant structures.
- Does the staking avoid Gharar (excessive uncertainty) and Maysir (gambling)?
Toncoin Shariah Compliance Score
- Total Shariah Compliance Score out of 100
- 27 different components researched
- More comprehensive than any other platform