All answers
Coins and tokens
What is a utility coin, and does the label make it halal?
Answered by the ShariaQuant team
Almost every project calls its token a utility token, which is why the label decides very little. Aave has genuine, working utility and still fails our screen, because the utility is governing a lending market. Utility has to mean the token does something necessary in a business that is itself permissible.
Why the label decides littleThis is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.