If one finds a new altcoin (can be a meme coin), do some research it still has low market cap, but there is huge community behind it pushing to pump it’s price. Is it halal to invest in it and take profits later if any.
$BONK as an example.
I’ll refer you to the answer to the pump and dump question, which you may find interesting as your initial description focusses on a community pumping a certain coin, that you may want to get in on.
Your second comment a couple of days ago makes things interesting. If a coin has no utility or roadmap then what is the asset you are actually buying? If it is just another digital currency, then the most important thing to determine is if it is widely accepted as a digital currency? Take Doge for instance, every Muslim in this space at one point claimed it is not permissable as it is a meme coin and had far too much ucertainty. However, at $13B market cap and within the top 10, you will find all the same Muslims now state that it is permissable.
This doesnt mean any past ruling was incorrect. It simply means the uncertainty was reduced and the coin became widely accepted as a legitimate cryptocurrency, despite all the negative things we can atttribute to it.
I guess it comes down to your halal/haram risk appetite. Generally the more uncertainty, the more “haram” something becomes so best to avoid in my opinion.
I’ll let the experts weigh in here, but until they do here’s my opinion.
It’s almost like a middle ground between gambling and investing. If you do your research and it looks like they’re actually going to build a product, then it would mean more towards investing. But like most memecoins, it’s a gamble and the project could fail or was never even planned to grow in the first place by the operators.
If you do your research and believe the project actually has a project in the works, then it could lean towards investing, then later if it looks like the project would fail pulling out would be saving your investment.
but if you’re just in it for the gains and not really doing research, what makes it different from gambling?
Thank your response! Fair point!
But let’s say the coin by nature has no utility or roadmap (at least for now), therefore investing in it blindly potentially introduces excessive uncertainty (Gharar).
However, if I do my research, figure out that the token has:
– A low market cap means more potential for growth.
– Deflationary Supply.
– Robust Community.
– It’s getting popular and more buyers coming in every day.
– The token has a great score on popular crypto websites.
– Its liquidity is locked for thousands of days.
– And not to forget we’re in a bull market.
Would that be still gambling?
.,….
Hey,
Thank you so much for taking the time to answer my question here!
Fair enough, but I need to double check something, what’s your opinion on meme coins with a roadmap like an exchange bridge app, partnerships and other stuff.