Is this crypto halal? Shariah screening report
Siacoin
SC
- Price
- $0.000626
- Market cap
- $35.05M
- Circulating supply
- 56,025,636,522.075
- 24h change
- -1.74%
Report generated 8/27/2026, 6:34:28 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
Siacoin (SC) is the native cryptocurrency of the Sia network, a decentralized cloud storage platform. The primary purpose of SC is to facilitate payments between storage providers (hosts) and users seeking to store their data in a decentralized manner. Hosts earn SC for providing storage space, while users spend SC to store their files.
Honesty & Founder Intent Clear
Siacoin has no pre-mine and operates on a proof-of-work mining system. New coins are created through mining rewards, promoting fair distribution. There was no ICO or token sale, meaning founders did not receive a disproportionate allocation of tokens.
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
Siacoin (SC) is the native cryptocurrency of the Sia network, a decentralized cloud storage platform. The primary purpose of SC is to facilitate payments between storage providers (hosts) and users seeking to store their data in a decentralized manner. Hosts earn SC for providing storage space, while users spend SC to store their files.
Current Usage
The Sia network has demonstrated consistent usage since its launch in 2015. As of 2023, the network hosts over 2 petabytes of storage across hundreds of hosts globally. The project maintains active development through its parent company, Skynet Labs (formerly Nebulous).
Business Model
The business model is straightforward and transparent: users pay for decentralized storage services using SC tokens. The network operates through smart contracts that manage storage agreements between parties. There is no lending, interest, or gambling components in the core protocol.
Development Activity
The project maintains regular development activity with frequent updates to its core protocol. The GitHub repository shows consistent commits and improvements. The team has expanded the ecosystem with Skynet, a content delivery and file sharing layer built on top of Sia.
Token Distribution
Siacoin has no pre-mine and operates on a proof-of-work mining system. New coins are created through mining rewards, promoting fair distribution. There was no ICO or token sale, meaning founders did not receive a disproportionate allocation of tokens.
Rating Justification
ComfortableFrom a Sharia compliance perspective, Siacoin demonstrates several positive attributes: (1) Clear utility as a medium of exchange for decentralized storage services, (2) Transparent and fair token distribution through mining, (3) No involvement in prohibited activities like interest-based lending or gambling, (4) Active development and real-world usage. The project's core function of facilitating storage services aligns with Islamic principles of fair exchange and providing legitimate value. The business model is straightforward and avoids common areas of concern in cryptocurrency projects.
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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