My profession is Software Engineering and I recently got an offer from a company that has built a platform where “bot creators” create bots on the platform, and customers can invest their money and subscribe to any bot/bots of their choice. Once subscribed, the bots will send a signal to the platform when to buy or sell. Based on that, the customers’ money will be invested in various coins as prescribed by their subscribed bot.
So far they are allowing only spot trades with long positions. But since long positions are not favourable in bear markets, the company wants to introduce futures and also margin trading as well.
In addition, they are also introducing a new bot type as “savings bot”, which is created by the company (and not by bot creators) where customers can invest in it, and the company will use this fund for the following purpose. Right now, when a customer wants to start a regular bot, the fund they pay to the platform can take some time to actually arrive at the company bank account. So they don’t want the customer to wait until that, instead, they put their own money to start the bot, and recover it when the customer’s money comes to the bank.
So since the company is funding those bots initially, and they don’t want to do it, they instead want to create a pool of money that can be used for it. This is where the money collected through the savings bot comes into play. They use this money for the initial funding of other bots. And as a benefit to the customer, they’d pay a weekly payment to the customers who invested in it, which amounts to 6.75% annually. They have put up a market cap of 500k euros after which they’ll stop getting funds, and open another bot with a 5.75% payout and a market cap of 1 million euros. After that, they’ll go for a 4.75% payout with again a market cap of 1 million euros. After that, they may open new bots as and when they require more money for the pool.
The kind of work I would do there is building the mobile app and its backend to facilitate all sorts of above mentioned activities through the bot. And I want to know is it permissible to work in such a company? and the reason behind the answer to the previous question?
Please note that we don’t screen tokens on this forum. We have our IFG Halal Crypto List (https://www.islamicfinanceguru.com/crypto/), where we share our own sharia screening of the top 50 cryptocurrencies. Check it out!