Loom Network
Crypto Overview
Overview
Loom Network is a Layer 2 scaling solution for Ethereum that was designed to enable large-scale social applications and games on the blockchain. The LOOM token is the native utility token of the platform.
Purpose and Utility
The primary intended purpose of LOOM is to serve as a utility token within the Loom Network ecosystem. It is used for:
- Deploying DApps on the Loom Network
- Paying transaction fees
- Staking to become a validator
- Governance participation
Business Model Analysis
The business model focuses on providing blockchain infrastructure for decentralized applications, particularly gaming and social applications. There is no evidence of involvement in prohibited activities like gambling, interest-based lending, or adult content.
Real-World Adoption
The project has seen varying levels of adoption since its launch in 2018. While initial adoption was strong with several games and DApps, current usage metrics show reduced activity. However, the platform continues to maintain its core infrastructure and development.
Platform Development
The project maintains active development, though at a reduced pace compared to earlier years. The GitHub repositories show ongoing maintenance and updates, indicating continued technical development.
Token Distribution and Governance
The token distribution appears relatively decentralized, with no concerning concentration among founders or early investors. The project maintains transparency regarding token allocation and usage.
Crypto Impact
To assign a comfort level investing in Loom Network 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 Loom Network.
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.