Asalaamu’alaikum @Mufti_Faraz_Adam
Hope you’re well. I’ve read your book and articles about crypto and noticed that when you mention the conditions of screening crypto projects, you mention that the “Financial Screening” is specifically only for equity tokens.
My question is does financial screening not matter for tokens that aren’t equity tokens and are simply just governance or utility tokens?
Great reads by the way, May Allah reward you for your efforts!
Wa alaykum salaam dear brother,
Hope you are well.
Yes, financial screening is solely for equity tokens. No other token type needs this screening.
Allah knows best
JazakAllah for the reply!
Just to go into a little more detail, does that mean if a crypto project that has a governance or utility token, (not an equity token), has a completely halal product/service which they sell to customers or businesses, but may have some streams of haram revenue by selling their halal product/service to a haram gambling project for example (I’d consider this a haram revenue stream), would it still be halal to buy the governance or utility token (not an equity token), as financial screening wouldn’t matter?
I’m very skeptical about many tokens, and really wonder what the value proposition of many cryptos.
Nevertheless, financial screening would only be applicable to equity tokens.
JazakAllah! I really appreciate you taking the time to share your thoughts about this