Is this crypto halal? Shariah screening report
TerraClassicUSD
USTC
- Price
- $0.005253
- Market cap
- $29.28M
- Circulating supply
- 5,573,212,070.462
- 24h change
- 0.15%
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
Cosmos Ecosystem Stablecoin Algorithmic Stablecoin Ethereum Ecosystem Seigniorage Purpose and Background TerraClassicUSD (USTC), formerly known as UST, was designed as an algorithmic stablecoin meant to maintain a 1:1 peg with the US Dollar through an algorithmic relationship with the LUNA token. After the dramatic collapse of the Terra ecosystem in May 2022, it lost its peg and now fun
Honesty & Founder Intent Clear
The token distribution was significantly affected by the collapse, with many original holders experiencing substantial losses. Current governance is managed through the Terra Classic community, though with limited effectiveness. Revenue Model The current model relies primarily on trading activity, as the original algorithmic stablecoin mechanism is no longer functional. There are no lending or in
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
Cosmos Ecosystem Stablecoin Algorithmic Stablecoin Ethereum Ecosystem Seigniorage Purpose and Background TerraClassicUSD (USTC), formerly known as UST, was designed as an algorithmic stablecoin meant to maintain a 1:1 peg with the US Dollar through an algorithmic relationship with the LUNA token. After the dramatic collapse of the Terra ecosystem in May 2022, it lost its peg and now functions as a standard cryptocurrency without its original stablecoin utility. Current Utility and Usage Following the ecosystem collapse, USTC no longer serves its original purpose as a stablecoin. Currently, it primarily functions as a speculative digital asset with very limited practical utility. The Terra Classic community has proposed various recovery plans and potential use cases, but none have materialized into significant adoption. Platform and Development While there is some development activity within the Terra Classic ecosystem, it is minimal compared to pre-collapse levels. The primary focus has been on governance proposals and potential recovery mechanisms.
Token Distribution
The token distribution was significantly affected by the collapse, with many original holders experiencing substantial losses. Current governance is managed through the Terra Classic community, though with limited effectiveness. Revenue Model The current model relies primarily on trading activity, as the original algorithmic stablecoin mechanism is no longer functional. There are no lending or interest-bearing components in the current implementation.
Rating Justification
ComfortableFrom a Sharia compliance perspective, USTC currently operates as a standard cryptocurrency with ownership rights and transfer of value capabilities. While its original stablecoin mechanism involved elements that could be considered problematic from an Islamic finance perspective (algorithmic price manipulation), the current iteration functions as a basic digital asset. The token does not currently facilitate any prohibited activities such as interest-bearing loans, gambling, or adult content. Trading of the token involves actual ownership transfer and is not a zero-sum game.
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.
- corpus