Karatgold Coin
Crypto Overview
Overview
Karatgold Coin (KBC) was a cryptocurrency project launched in 2018 by Karatbars International GmbH, claiming to be backed by physical gold. The project faced significant controversy and legal issues.
Purpose and Utility
The stated purpose was to create a gold-backed cryptocurrency where each token could be exchanged for physical gold. However, multiple regulatory authorities, including Germany's BaFin, issued warnings about the project's claims and practices.
Current Status
As of 2023, the project has effectively collapsed. The token is no longer actively traded on any major exchanges, and the company behind it has faced numerous legal challenges. The promised gold backing and exchange system never materialized as intended.
Business Model Assessment
The project's actual operations deviated significantly from its stated purpose. Multiple red flags emerged, including misleading marketing claims about gold backing and regulatory compliance. The company's founder, Harald Seiz, has faced legal scrutiny in various jurisdictions.
Development and Adoption
There is no evidence of current development activity or legitimate adoption. The project's ecosystem has essentially ceased to function, and the token has lost nearly all its value.
Crypto Impact
To assign a comfort level investing in Karatgold Coin 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 Karatgold Coin.
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.