Islamic Coin (ISLM) is an emerging cryptocurrency that follows Sharia rules. The founders of the coin have made a wild claim. Their Muslim-focused asset could scale like Bitcoin (BTC) and reach the equivalent of over $1 trillion in value.
“We know the adoption will happen gradually,” Mohammed Alkaff Alhashmi, co-founder of Islamic Coin, told BeInCrypto. “However, if only 3-4% of the online Muslim community owns an Islamic coin, it will become a bitcoin-scale crypto asset. It will generate $1 trillion for its holders and $100 billion for the Evergreen DAO,” he added.
The tongue sounds incredibly bombastic, even unbelievable. This given that ISLM has not yet penetrated the market at the level of Ethereum, for example. ETH is the second largest crypto asset with a market capitalization of $157 billion. And that doesn’t even mention Bitcoin.
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It’s not even listed on the major stock exchanges yet. But Alhashmi is confident in the product his company is building. He says they are playing the long game trying to tap into the $2.88 trillion Islamic financial sector.
Islamic coin: what is it?
According to Alhashmi, Islamic Coin is the native token of Haqq, the proof-of-stake (PoS) blockchain that runs on Cosmos via the EVMOS protocol. Translated as “truth” in Arabic, Haqq “scrupulously respects Islamic views and traditions on finance”.
The idea behind the ISLM coin was to give Muslim worshipers around the world an instrument through which they could participate in the digital economy. Described as a halal asset, Islamic Coin is said to be Sharia compliant.
This means that it conforms to the basic principles that guide Islamic life, and by extension the law, around issues of morality and modesty. Alhashmi said the Islamic coin was specifically designed to facilitate 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 make up the majority of the population in 47 countries, we designed Islamic Coin to have a lasting and powerful impact on 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 confirmed that he adhered to the religious norm which disapproves of matters such as gambling. Thus, Muslims were free to interact with the room.
A month later, Islamic Coin raised $200 million in a private sale. This is a feat considered remarkable in a 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 Haqq association.
And even. Something to consider is that people in the Middle East are loosening their ties with Islam, especially in countries like Iran. Young people in particular no longer identify with strict orthodoxies as they once did.
Tokenomics of the Islamic Coin
According to the whitepaper, Islamic Coin’s supply is limited to 100 billion tokens. Every two years (called an era), the coin’s emission rate is reduced by 5%. The show will stop in 100 years from the first block of the first era, he says. 20 billion tokens were minted in the genesis block.
Mohammed Alkaff Alhashmi said that ISLM is used for payments, network governance, staking and to pay transaction costs on the network. “One of the most important goals of ISLM is to foster progress and charitable work,” he said.
Every time new coins are minted, 10% of the issued amount goes to Evergreen DAO, a non-profit organization “focused on long-term sustainability and community impact.” Coins are deposited in the DAO “to be invested in Islamic internet projects or donated to Islamic charities.”
Between 1% and 5% goes to a block proposer and its delegators. The rest is distributed proportionally among all bonded validators and their delegators. As a proof-of-stake asset, Islamic Coin uses a delegator system of bonded validators.
These are rewarded proportionally to the amount of ISLM tokens they have staked to help secure the network and process transactions. Rewards are distributed to delegators minus the validator’s own commission.
ISLM holders can lock their tokens by linking them to validators in a process known as “staking”. By linking coins, ISLM holders delegate voting power to validators and become delegators. This gives them the right to earn rewards and participate in governance.
Alhashmi, the co-founder of Islamic Coin, claimed that the crypto asset “is the first Sharia-compliant digital currency, which can be used by followers of Islam without any limitations.”
He sees a future where 3% to 4% of the existing one billion Muslim internet users will adopt the Islamic coin. The token would be able to evolve as Bitcoin (BTC), the first and largest cryptocurrency.
At 3% adoption, Islamic Coin would be worth $720 billion in capitalization. The value would skyrocket to $4.2 trillion with an adoption rate of 20%, four times the total global crypto market capitalization.
“The token’s immense potential is backed by the global influence of the Muslim world,” says Islamic Coin website.
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 is driven by the growth of digital technologies and mobile communications .
Alhashmi’s projections could be comparable to Willy Woo’s estimates that Bitcoin will hit one billion active users in three years. But let’s put Islamic Coin’s market capitalization outlook into perspective with current metrics.
With a market cap of $1 trillion, Islamic Coin will be worth more than all 19,000+ existing cryptocurrencies combined. According to Coinmarketcap, the global crypto market capitalization is $916 billion. That figure is down from a peak of over $3 trillion last November.
Bitcoin accounts for 40%, or $366 billion of that total. BTC is followed by Ethereum, Tether (USDT) at $68 billion, USD Coin (USDC) ~$45 billion, and Binance Coin (BNB) at $44 billion.
Shariah compliance is an important customer need and regulatory requirement in several Muslim markets. But the legitimacy of crypto assets such as Bitcoin remains a subject of great controversy.
Prominent Islamic leaders have called bitcoin “haram”. This means that it is prohibited by Sharia on the grounds that the 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 how digital currencies rob governments and central banks of their power over national monetary systems.
In November 2021, a prominent Islamic scholar from Indonesia, Asrorun Niam Sholeh, issued a religious statement, or fatwa. He warned followers against crypto investing, saying, “it’s like gambling.”
Alhashmi and his co-founders believe their project can help blockchain technology adopt a strong value system. “I think DeFi will benefit from adopting a value system and some of that ethic,” he said.
“Sharia finance is based on ethics and values. His financial school does not support interest, gambling, etc. To ensure compliance, every project goes through our Sharia Board, which has over 45 years of experience in Islamic finance.
ISLM began to receive support from powerful members of the Islamic community. Senior Emirati Sheikh Khalifa Bin Mohammed Bin Khalid Al Nahyan was recently added to the advisory board of Islamic Coin.
Co-founders include Hussein Mohammed Al Meeza, Mohammed Alkaff Alhashmi, Andrey Kuznetsov and Alex Malkov.
Will Islamic Coin be the next Bitcoin? Or will he slip into anonymity like the thousands of other crypto hopefuls? Let’s look at this space.
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Islamic Coin Claims It Will Scale Like Bitcoin And Reach $1 Trillion In Value
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