I’m wondering if Binance launchpad is halal.
Here’s how it works in a nutshell:
Launchpad is one of the methods to introduce new tokens. I could find no relation to riba in this method.
Phase 1 (7 days): Measurement
Your average BNB holdings is calculated to determine how much you are allowed to commit/subscribe.
Phase 2 (4 hours): Subscription
After this period, you can commit a maximim of the measured average or less if you want, with a minimim of 0.1 BNB.
Phase 3 (1 hour): Calculation
After you have committed the amount of BNB you can’t use that BNB anymore until after the token distribution. The BNB is moved to a separate Launchpad wallet.
The amount of new tokens you get is calculated like so:
Your amount of committed BNB / total amount of committed BNB * total amount of new tokens introduced
There is a hard cap of how many tokens one can get though, so if someone reaches that hard cap then the surplus of tokens is equally distributed to those who have not reached that cap.
Phase 4: Distribution
The last phase is the actual distribution of the coin, the new token will be bought using a predetermined BNB price with the amount you are allowed to buy.
So there’s 2/3 scenarios:
The committed BNB is exactly enough to buy all the allocated new tokens. BNB will be deducted and the new tokens will be in your SPOT wallet
The committed BNB is more than enough to pay for all allocated tokens. The allocated tokaens and the remaining BNB will be put in your SPOT account.
The committed BNB is not enough to pay for all allocated tokens. I can’t find anything regarding this and I’m not sure if it’s even possible. I’m assuming if it were to happen it will deduct all BNB and return the amount of new tokens worth that BNB. I don’t know what woild happen to the remainder allocated tokens. Couldn’t find any mention of risk of debt in this scenario, so I don’t think this can happen.
So in short: the committed BNB is only there to determine how much new tokens you are ALLOWED to buy. The committed BNB does not automatically mean that you get that amount of BNB worth of tokens.
So, is this halal?