Crypto Trends to Watch: Ethical Investing for Muslim Traders Seeking Barokah

 

Introduction 

The cryptocurrency market is making headlines yet again as Bitcoin reaches an all-time high in light of market optimism and world events such as the U.S. election and the resurgence of public figures like Donald Trump. With Bitcoin's rise, green charts are appearing everywhere, drawing in investors eager to take advantage of the historic surge. But the current crypto excitement far beyond Bitcoin alone new digital assets like memecoins (Dogecoin and Squirrel), celebrity-backed tokens (WLFI).

For Muslim traders, this moment brings both opportunity and reflection. The excitement surrounding crypto profits is undeniable, but how can Muslim investors engage in this booming market responsibly? While many are drawn to high returns, Islamic principles encourage us to invest with purpose and seek barakah (blessings), avoiding the temptation of shahwah (excessive desire through prohibited means) that often accompanies rapid financial gain.

The Rise of Memecoins: Dogecoin and Squirrel (PNUT)

Dogecoin

Dogecoin started as a joke, but it’s now one of the top cryptocurrencies. Part of its rise is due to the support of Elon Musk, who has joked about being the “CEO of Dogecoin” and currently, the head of a Department of Government Efficiency (DOGE) appointed by Trump for it. Musk’s backing has added a surprising level of seriousness to Dogecoin, which is now used for tipping online, small payments, and fun transactions.

Thanks to its strong community and Musk’s playful endorsements, Dogecoin has become the leader of “memecoins.” Although it’s a risky investment, Dogecoin attracts people who enjoy its unique mix of humor, community, and some real-world use.

Squirrel (PNUT)

Inspired by Dogecoin’s success, Squirrel (PNUT) is a new memecoin with a unique twist: Donald Trump holds the largest holder, creating a powerful connection to the political and social sphere. This link adds a layer of unpredictability, as the token’s value could change based on Trump’s public actions and statements. Squirrel’s appeal as a memecoin linked to a high-profile figure highlights how public sentiment and media exposure can heavily influence value in this high-risk category.

WLFI and the Influence of Brand Power

WLFI Token

World Liberty Financial (WLFI) is often seen as a "family project" linked to the Trump family, attracting investors who support the Trump brand and its values. Although Donald Trump or his family didn’t create the token, they reportedly benefited from its success. This connection draws investors who see the token as part of the Trump legacy.

WLFI’s ties to such a famous family create unique market effects. Public comments, political news, or even endorsements from the Trump family can greatly affect WLFI’s value, making it more unpredictable than other tokens. The Trump family's involvement increases interest, attracting investors who believe in the brand's long-term influence.

Avoiding Desires and Unethical Profits

In investment, it is important to follow Shariah principles to ensure that our actions align with Islamic values. Avoid investments driven by desires (shahwah) that blur the distinction between halal (permissible) and haram (prohibited), such as memecoins without real use cases. For example, coins like PNUT may offer extreme profits such as 600% in a single day but they are highly volatile and can result in significant losses just as quickly. These coins may also contradict Shariah principles regarding al-mal (assets), as they lack beneficial use cases.

Additionally, avoid investments in projects that are clearly prohibited, such as derivatives, gambling, bonds, or those supporting unethical causes, like Israeli-based projects. Always prioritize ethical and lawful investments over short-term gains.

Conclusion

The cryptocurrency market is full of exciting opportunities, but it also comes with risks and challenges, especially for Muslim traders who must align their investments with Shariah principles. While assets like memecoins and celebrity-backed tokens may offer quick profits, but they often lack real-world use and carry high risks of loss. As Muslims, we must resist the temptation of shahwah (excessive desire) and focus on seeking barokah (blessings) in our investments. By avoiding unethical and Shariah non-compliant projects and prioritizing Shariah-compliant and purposeful investments, we can navigate the crypto market responsibly, ensuring that our financial choices benefit us both in this world and the hereafter.

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