Coinary Token
Crypto Overview
Overview
Coinary Token (CYT) serves as the native token of Coinary Exchange, a decentralized derivatives trading platform. The token was created to provide utility within the Coinary ecosystem.
Purpose and Utility
The primary stated purpose of CYT is to serve as a governance token for the Coinary Exchange platform, allowing holders to participate in protocol decisions and receive trading fee discounts. Token holders can also stake CYT to earn a share of the platform's revenue.
Business Model Analysis
The business model centers around decentralized derivatives trading, which involves trading synthetic assets. The platform earns revenue through trading fees. While the basic trading of digital assets is permissible, the derivatives and synthetic assets aspect raises some concerns from a Shariah perspective.
Development and Adoption
The project shows ongoing development activity with regular updates to the platform. However, current usage appears to be primarily focused on speculative trading rather than governance participation.
Token Distribution
Token distribution information shows a significant portion allocated to the team and early investors, with standard vesting periods in place. The project maintains transparency regarding token allocations and vesting schedules.
Revenue Model
The revenue model primarily relies on trading fees from derivative transactions and synthetic asset trading, which raises concerns from an Islamic finance perspective due to the speculative nature of derivatives trading and potential elements of gharar (excessive uncertainty) in synthetic assets.
Crypto Impact
To assign a comfort level investing in Coinary Token from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Coinary Token.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.