Islamic Coin: Bitcoin-Like Growth Promises Worth $1 Trillion – BeinCrypto

Islamic Coin (ISLM) is an emerging sharia-compliant cryptocurrency. The founders of this coin recently made a bold claim that their asset for the Muslim community could grow like Bitcoin (BTC) and reach the equivalent of over $1 trillion in value.

“We know the adoption will be gradual,” Mohammed Alkaff Alhashmi, co-founder of Islamic Coin, told BeInCrypto. “However, if even 3-4% of the Muslim community on the internet owns Islamic Coin, it will become a bitcoin-scale crypto asset. It will generate $1 trillion for its holders, and $100 billion for the DAO Evergreen,” he added.

These remarks seem incredibly bombastic, even implausible. Indeed, the ISLM token has not yet even penetrated the market at the level of Ethereum, for example. ETH is the second largest crypto asset in the industry with a market value of $157 billion in capitalization. And let’s not even talk about Bitcoin.

Moreover, the coin is not even listed on major stock exchanges yet. And yet, Mr. Alhashmi has confidence in the product his company is developing. He says they are focused on the long term trying to tap into the $2.88 trillion Islamic finance industry.

Islamic Coin, what is it exactly?

According to Mr. Alhashmi, Islamic Coin is the native token of Haqq, a blockchain proof of stake (PoS) that runs on Cosmos through the EVMOS protocol. Haqq, which means “truth” in Arabic, “strictly adheres to Islamic views and traditions in finance.”

The idea behind the ISLM token was to offer Muslim believers around the world an instrument through which they could participate in the digital economy. Described as a halal asset, the Islamic coin is said to be Sharia compliant.

This means that this crypto complies with the fundamental principles that guide Islamic life and, by extension, the law of morality and respect. Mr Alhashmi said Islamic Coin was specifically designed to enable philanthropic acts.

“Islam is the second largest religion in the world with nearly 2 billion followers: that’s about a quarter of the world’s population,” computer engineer Alhashmi told BeInCrypto.

“Muslims constitute the majority of the population in 47 countries. We designed Islamic Coin to deliver a lasting and powerful impact to one of the largest communities in the world.”

Islamic Coin was launched on the Haqq blockchain in May. In June, the token received a religious declaration, or “fatwa,” from Muslim leaders. This fatwa confirmed that the coin conforms to religious norms that disapprove of activities such as gambling. Muslims were therefore free to use this crypto.

A month later, Islamic Coin raised $200 million in a private sale. This is a feat considered quite remarkable in the middle of the bear market. The token is overseen by a board of directors made up of prominent Islamic bankers, software engineers and academics under the aegis of the Swiss-based nonprofit Haqq.

And yet. It is important to take into account that the inhabitants of the Middle East loosen their ties with Islam somewhat, especially in countries like Iran. Young people, in particular, no longer identify with strict orthodox doctrines as they once did.

The tokenomics of Islamic Coin

According to its whitepaper, the supply of Islamic Coin is limited to 100 billion tokens. Every two years (called Era, or Era), the coin’s emission rate is reduced by 5%. The white paper says the show will stop in 100 years from the first block of the first era. 20 billion tokens were minted in the genesis block.

Mohammed Alkaff Alhashmi said that ISLM is used for payments, network governance, staking and payment of transaction costs on the network. “One of the most important goals of ISLM is to fuel progress and charity,” he said.

Each time new tokens are minted, 10% of the issued amount is donated to Evergreen DAO, a nonprofit “focused on long-term sustainability and community impact.” The tokens are deposited in the DAO “in order to be invested in Islamic internet projects or donated to Islamic charities.”

Between 1% and 5% is allocated to a block proposer and its delegates. The rest is distributed proportionally to all linked validators and their delegates. As a proof-of-investment asset, Islamic Coin uses a bail validator delegate system.

Between 1% and 5% is allocated to a block proposer and its delegates. The rest is distributed proportionally to all linked validators and their delegates. As a proof-of-investment asset, Islamic Coin uses a system of linked delegates and validators.

These receive rewards proportional to the amount of ISLM tokens they have staked to help secure the network and process transactions. Rewards are distributed to delegates, after deducting the validator’s own commission.

Holders of the ISLM token can lock their tokens by linking them to validators in a process called “staking”. By surrendering coins, ISLM holders thus delegate voting power to validators and become delegates. This gives them the right to earn rewards and participate in governance.

Islamic coin
ISLM Founders Say Crypto Will Rival Bitcoin

Growth on the scale of Bitcoin

Alhashmi, co-founder of Islamic Coin, claimed that this crypto asset “is the first Shariah-compliant digital currency usable by followers of Islam without any limits.”

He envisions a future where 3-4% of the already existing one billion Muslim internet users will adopt Islamic Coin. The token would then be able to develop as Bitcoin (BTC), the first and most important cryptocurrency.

With a 3% adoption, Islamic Coin would reach a market capitalization value of $720 billion. With an adoption rate of 20%, this value would rise to $4.2 trillion, four times the current total crypto market capitalization.

On the Islamic Coin website, we can read that “the immense potential of this token is supported by the global influence of the Muslim world”.

According to the Global Islamic Economy Report, the volume of the Islamic financial sector was $2.88 trillion in 2020 and is expected to reach $3.69 trillion by 2024. This growth is driven by digital technologies and media communications. mobile devices.

Alhashmi’s estimates could be comparable to those of Willy Woo, who estimates that Bitcoin will hit one billion active users in three years. That said, it is interesting to contrast Islamic Coin’s market capitalization outlook with its current numbers.

With a market capitalization of $1 trillion, the Islamic Coin is said to be worth more than all of the more than 19,000 cryptocurrencies in existence. According to Coinmarketcap, the total crypto market capitalization is $916 billion. This amount is down from the peak of more than $3 trillion reached last November.

Bitcoin accounts for 40% of this total amount, or $366 billion. After BTC, we find Ethereum, Tether (USDT) with 68 billion dollars, USD Coin (USDC) with around 45 billion dollars and Binance Coin (BNB) at 44 billion dollars.

Stay Sharia Compliant

Shariah compliance is an important customer need as well as a regulatory requirement in many Muslim markets. However, the legitimacy of crypto assets such as Bitcoin remains a subject of great controversy.

Indeed, prominent Islamic leaders have called Bitcoin “haram”. This means that it is prohibited by Sharia because this asset can be used for illegal activities such as money laundering, gambling and fraud, which are prohibited by the Quran.

There are also concerns about the lack of central authority and the fact that digital currencies strip governments and central banks of their power over national monetary systems.

In November 2021, a prominent In November 2021, a leading Indonesian Islamic scholar, Asrorun Niam Sholeh, issued a fatwa, in which he warned worshipers against investing in cryptocurrencies, saying it was similar to “a gambling bet”.

His ethics

Alhashmi and his co-founders believe their project can play a role in blockchain technology adopting a strong value system. “I think DeFi will benefit from adopting a value system and some of those ethics,” he said.

“Sharia finance is based on ethics and values. Its financial school does not support interest, gambling, etc. To ensure compliance, every project goes through our Shariah board, which has over 45 years of experience in Islamic finance.”

The ISLM token started to receive support from powerful members of the Islamic community. Khalifa Bin Mohammed Bin Khalid Al Nahyan, a prominent Emirati sheikh, was recently added to the advisory board of Islamic Coin.

Among its co-founders are also Hussein Mohammed Al Meeza, Mohammed Alkaff Alhashmi, Andrey Kuznetsov and Alex Malkov.

Will Islamic Coin be the next Bitcoin? Or will he fade into anonymity like thousands of other crypto candidates? Let’s keep an eye on this project.

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Islamic Coin: Bitcoin-Like Growth Promises Worth $1 Trillion – BeinCrypto


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