IslamicFinance.de

Dear Reader,

As more and more token are offered also with Islamic label please find some thoughts on some very basic data checks (suggestions from the readers welcome: gassner@islamicfinance.de):

Token check list:

Pre-minted yes/no - if the tokens are already "minted" that means that all proceeds are going to the *central* promoter. Decentralised finance would be a misnomer, e.g. bitcoin genesis blockchain - the pre-minted token number was around 50 out of 20 million - thereafter miners were rewarded with the new bitoins. Now many issue token numbers of a billion or more. None of those has a chance to become the next bitcoin. Pre-minted token are the antithesis.

Intense online/offline marketing - press releases, repeated text, pick part of the press release text into " " and then google search how often it is cross-posted with unchanged wording. Bad sign.

This goes along with the question: Is there real third party write-ups in the web? Awards and Sponsorships do not count as they are bought for money like ads.

Due Diligence on team members:
type in Google: "Name" AND scam OR corruption OR Rüsvet OR bakshish OR fraud OR pyramid OR crime OR court OR shit

Confirm with team members they are into the token for real and not just copy/pasted

Professional experience of team members starting with Linkedin

Do they have a whitepaper with a use case you understand and being clear about the advantages it offers?

Are any assets or rights granted by the token? Is there anything forcing demand for it (like paying taxes in it or buying items otherwise not obtainable)?

Any terms and conditions published? Study any disclaimer or waiver of rights most carefully.

Corporate address and verification of commercial register

Is the underlying computer code public (e.g. github) and could be verified and openly discussed?

Analyse and discuss the data on the industry websites like:

https://etherscan.io/
https://www.dextools.io/
https://icobench.com/icos?s=islamic

And last not least: Which scholars have assessed the token, have they granted a written Fatwa as positive confirmation? What is the reputation of the scholars?
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Is it easy to start a scam token? It seems certainly so: All details in YouTube tutorials like this one: https://www.youtube.com/watch?v=G6shRPixqVY watch it to know how token are made and marketed!!!

So, do not be blinded by Islamic labels or others.

Don't fall for scammers! There is no protection by the state or anybody else other than your analysis. Don't buy, what you do not understand.

Happy to add further research tips from readers!!!

NB: Please note that the religious authorities of Egypt, Turkey and Indonesia declare token without assets or rights as impermissible in Islam (haram). The OIC Fiqh Committee had a first session discussing research papers to prepare a resolution. Some scholars are supportive, others not. Discussion is ongoing. In the meantime at least stay out of scam token.

I am tracing the opinions so far public here: https://islamicfinance.de/?q=node/12254

If you want to sharpen your research skills, try this coin: https://www.howeycoins.com the safest of all...

Best regards,

Michael Gassner