Factor
Crypto Overview
Overview
Factor (FCTR) is a cryptocurrency that claims to serve as a utility token for The Factor Protocol, a decentralized platform for creating synthetic assets in the cryptocurrency market.
Purpose and Utility
The stated purpose of Factor is to provide governance rights and utility within the Factor Protocol ecosystem. Token holders can participate in protocol governance decisions and use FCTR for creating and managing synthetic assets.
Business Model Analysis
The Factor Protocol's business model involves creating synthetic assets that track the price of real-world assets. While the concept of synthetic assets itself is not inherently problematic from a Sharia perspective, careful consideration must be given to how these synthetic assets are structured and traded.
Development and Adoption
The project shows active development on GitHub, with regular updates to the protocol. However, current adoption metrics and real-world usage data are limited, making it difficult to fully assess the extent of actual utility implementation.
Token Distribution
The token distribution appears reasonably balanced, with approximately 40% allocated to the community, 30% to the team and advisors (with vesting schedules), and 30% to the ecosystem development fund.
Crypto Impact
To assign a comfort level investing in Factor 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 Factor.
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.