Poolz Finance

Halal Rating :
Questionable
Last Price $1.46 Last updated:
Rank 1230
1D Change -0.74 %
Market Cap $7.45m
Circulating supply 5,098,752
Maximum supply 5,500,000

Crypto Overview

Categories
  • Polkadot Ecosystem
  • Launchpad
  • Avalanche Ecosystem
  • Ferrum Network
  • BNB Chain

Project Overview

Poolz Finance is a decentralized cross-chain IDO (Initial DEX Offering) platform launched in 2021. The platform aims to provide a launchpad for new cryptocurrency projects while offering investment opportunities to POOLX token holders. The POOLX token serves as the native utility token of the ecosystem, providing governance rights and access to investment pools.

Intended Utility

The primary stated purposes of POOLX include: governance rights over the Poolz platform, access to early-stage project investments, and staking opportunities to participate in IDO pools. Token holders can participate in voting on platform decisions and gain priority access to new project launches.

Actual Utility Assessment

The platform has facilitated numerous IDO launches, though activity has significantly decreased in recent months. On-chain data shows limited governance participation, with most token utility currently centered around IDO access rights. The project faced security issues in March 2023 with a significant exploit that resulted in substantial losses.

Token Distribution and Founder Analysis

Initial token distribution allocated 30% to the team and advisors, with 12-month vesting periods. Marketing expenses appear proportional to development efforts, though transparency regarding ongoing development could be improved. The team maintains regular communication through official channels, but development activity on GitHub has shown inconsistent patterns.

Sharia-Relevant Considerations

The core business model of facilitating new project launches aligns with Islamic principles of trade and exchange. However, the staking mechanisms used for pool access require careful consideration as they may involve elements that could be interpreted as riba. The platform itself does not directly engage in prohibited activities, though it has hosted projects of varying ethical standards.

Crypto Impact

To assign a comfort level investing in Poolz Finance 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 Poolz Finance.

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Justification for our Halal Rating