Is this crypto halal? Shariah screening report
IOTA
MIOTA
- Price
- $0.039570
- Market cap
- $182.42M
- Circulating supply
- 4,610,103,634
- 24h change
- 0.68%
Report generated 8/27/2026, 6:34:27 PM · stored corpus assessment · confidence 88%
Crypto Halal Report Criteria
We use a disciplined framework to determine if a digital asset is Comfortable from a sharia perspective, based on three core pillars.
Purpose & Real-World Value Clear
IOTA's primary purpose is to serve as a backbone for secure data and value transfer in the IoT ecosystem. The MIOTA token is used to facilitate machine- to-machine (M2M) communications, micropayments, and data transfers. The project aims to enable a machine economy where devices can autonomously exchange data and value. Current Development and Usage IOTA has established partnerships with various
Honesty & Founder Intent Clear
All IOTA tokens were created in the genesis transaction and distributed through an initial coin offering (ICO). The IOTA Foundation, a non-profit organization, oversees the protocol's development. There was no pre-mine for founders, and tokens were distributed fairly among early participants. Revenue Model IOTA operates on a fee-less model where transactions don't require mining or traditional tr
Dealing with Risk & Speculation Clear
Speculative trading of a real asset is treated as trade, not gambling, under the screening framework.
Crypto Overview
Purpose and Utility
IOTA's primary purpose is to serve as a backbone for secure data and value transfer in the IoT ecosystem. The MIOTA token is used to facilitate machine- to-machine (M2M) communications, micropayments, and data transfers. The project aims to enable a machine economy where devices can autonomously exchange data and value. Current Development and Usage IOTA has established partnerships with various organizations and companies, including Dell Technologies, Intel, and the Linux Foundation. The IOTA Foundation is actively developing the protocol, with recent major updates including the implementation of IOTA 2.0 (Coordicide) and smart contract capabilities.
Token Distribution
All IOTA tokens were created in the genesis transaction and distributed through an initial coin offering (ICO). The IOTA Foundation, a non-profit organization, oversees the protocol's development. There was no pre-mine for founders, and tokens were distributed fairly among early participants. Revenue Model IOTA operates on a fee-less model where transactions don't require mining or traditional transaction fees. The network is secured through a unique validation mechanism where each transaction validates two previous transactions.
Rating Justification
ComfortableBased on our analysis, IOTA demonstrates clear utility in facilitating IoT communications and value transfer. The project shows significant development activity, legitimate partnerships, and a transparent governance structure. The absence of transaction fees and mining rewards aligns with Islamic principles by avoiding riba. The token serves a clear purpose in the ecosystem and isn't primarily used for speculation or gambling. The fair initial distribution and non-profit structure of the IOTA Foundation suggest the project wasn't designed to enrich founders. While adoption is still in progress, this doesn't impact its Sharia compliance status. The core technology and use cases align with Islamic principles, focusing on creating real value through technological innovation.
While we find this token comfortable to invest in from a Shariah-screening perspective, this does not imply we think it is a strong investment.
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Disclaimer: These reports are findings of AI analysis and cannot be guaranteed to be accurate. Ratings reflect opinions derived from automated criteria applied to the sources you submitted and a corpus of prior assessments. This is not a fatwa and does not determine Islamic law. Ratings may change as projects evolve. Always conduct your own research before investing.
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