Crypto Question: Front running is it allowed in crypto?

Investment Questions and Chats Crypto
1

Selam aleykum dear mufti,

In crypto it is possible to do front running because the transactions are public. So it is possible to know whenever a big transaction is made. With this information it is possible to make a transaction before the big transaction is being made(this can be done by using a computer tool). After the big transaction is being made then I will immediately sell my order. In stock exchanges this is illegal because you act out of foreknowledge BUT the transactions are private. In crypto the transactions are not private, so this means we build a tool which act on public transactions…

Next to this can I also know your background study, icaza etc. Thanks!

What do you think?

2

Wa alaykum salaam,

If nothing illegal or unethical is being done ans the crypto is Shariah compliant, then it would be potentially permissible to do this.

The idea would be that anyone can practice this and not just yourself. If it was only yourself or a certain industry like brokers, then it would be unethical and discouraged.

Allah knows best