renBTC

Halal Rating :
Questionable
Last Price $66,291.88 Last updated:
Rank 839
1D Change 0.89 %
Market Cap $21.87m
Circulating supply 330
Maximum supply 13,698
Crypto Overview Crypto Impact Justification for our Halal Rating

Crypto Overview

Categories
  • DeFi
  • Wrapped Tokens
  • Fantom Ecosystem
  • BNB Chain
  • Bitcoin Ecosystem

Understanding RenBTC

RenBTC is a decentralized protocol that enables the minting of BTC tokens on the Ethereum blockchain, allowing Bitcoin holders to access Ethereum's DeFi ecosystem. The protocol was designed to bridge Bitcoin with other blockchain networks, primarily Ethereum.

The primary utility of RenBTC was to allow users to lock their Bitcoin as collateral and mint an ERC-20 representation (RenBTC) at a 1:1 ratio. This allowed Bitcoin holders to participate in Ethereum's DeFi ecosystem while maintaining exposure to Bitcoin's price movements.

Current Status Assessment

As of early 2023, the Ren protocol announced the shutdown of Ren 1.0, and users were advised to burn their RenBTC tokens and retrieve their original Bitcoin. The project team indicated they were working on Ren 2.0, but significant developments have not materialized.

Token Distribution and Governance

The protocol was originally developed by Ren (formerly Republic Protocol) and later acquired by Alameda Research. Following FTX's collapse, the protocol's future became uncertain. The token distribution was relatively centralized, with significant control held by the development team and Alameda Research.

Actual Usage Analysis

While RenBTC previously served a legitimate cross-chain purpose, its current utility is severely limited due to the protocol shutdown. Trading volume and liquidity have significantly decreased, and the token's primary use case no longer exists as intended.

Crypto Impact

To assign a comfort level investing in renBTC 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 renBTC.

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.

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Justification for our Halal Rating

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