Silver Token
Crypto Overview
Overview
Silver Token (XAGX) aims to provide a digital representation of physical silver on the blockchain, with each token backed by one troy ounce of .999 fine silver stored in secure vaults. The project was designed to bridge traditional precious metals markets with cryptocurrency markets.
Purpose and Utility
The primary purpose of XAGX is to offer a digital way to own and trade silver without the logistics and security concerns of physical possession. Token holders can redeem their XAGX for physical silver, though minimum redemption quantities apply.
Business Model Evaluation
The business model appears straightforward and transparent. Revenue is generated through storage fees and transaction fees. The underlying asset (physical silver) is a permissible commodity in Islamic finance. No interest-bearing mechanisms or impermissible activities were identified in the token's structure.
Real-World Adoption
While trading volume remains relatively modest compared to major cryptocurrencies, the token maintains active trading pairs on several exchanges. The project has established partnerships with recognized silver storage facilities and maintains regular third-party audits of silver reserves.
Platform Development
The development team maintains regular updates to the smart contract infrastructure and redemption process. The project demonstrates ongoing technical maintenance rather than major development activity, which is appropriate given its straightforward use case.
Token Distribution
Token supply is directly correlated to physical silver holdings, with new tokens minted only when additional silver is deposited into the vaults. The founding team's allocation appears reasonable and includes standard vesting periods.
Crypto Impact
To assign a comfort level investing in Silver Token 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 Silver Token.
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.