For exchange tokens that act as the main token for trading purposes on the specific exchange, there are some tricky cases that need to be clarified. First, the token itself represents the ecosystem that gains profit from all transactions on the exchange that may include the Non-Shariah project Token. Second, the ecosystem benefits from derivatives contracts that clearly contrast with Shariah's ruling. We assume the same methodology of Stock Shariah screening that enacts the prohibition of stockbroking activities is applied in the same case. However, the usage of Exchange Token is commonly used to trade NFT or any other coin, thus we recommend not to hold Exchange Token for more than 30 days to avoid being involved in their ecosystem.
| Category | Details | Status |
|---|---|---|
| Legitimacy | Not regulated by any countries or regulatory bodies. The project has a clear roadmap and genuine product on the blockchain, while the token/coin has a fundamental underlying value that allows it to be categorized as "Mal". | Passed |
| Project | The project is an exchange platform that allows users to trade by orderbook. However, there are many prohibited features such as derivatives, leverage, and Non-Halal Token offered in the platform that trigger Shariah Issues, considering the platform benefit a lot through brokerage fees. | Failed |
| Financials | The token is not backed by any equity, thus there is no financial screening on this token. | Passed |
| Token | The token can be used as a medium of exchange, interact with Defi and Staking. | Grey |
| Staking Method | Proof of stake method mechanism by this protocol complies with Shariah's rulings. Staking will be rewarded by transaction fees. | Passed |
Read the source document and verify project fundamentals.