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CateCoin

CateCoin (CATE)

AI Assisted Shariah Verdict
Last Update: 8/3/2026
Haram

SUMMARY

CateCoin is rated 'No' (Non-Compliant) because the protocol directly operates a 'bet2win' gambling game, which constitutes a clear maisir (gambling) violation. Additionally, the token features an automatic transaction tax reflection mechanism and derives an unknown portion of its revenue from the gambling product.

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Verdict by Activity

How you can hold and use CATE

Buy & Hold

Haram

The protocol directly operates a gambling mechanism (bet2win game), making the core business activity impermissible.

Automatic Reflections

Doubtful

A percentage of every on-chain transaction tax is automatically redistributed to all holders, which is a scholar-debated yield mechanism.

dApp Staking

Optional
Doubtful

Users can lock tokens in the official dApp for up to 15% APY, funded partially by inflation and ecosystem fees.

Ludo Bet2Win

Optional
Haram

The protocol operates a social bet2win game where players wager tokens to win a prize pool, constituting direct gambling (maisir).

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

The token operates on BNB Smart Chain, Ethereum, and Solana, which are neutral, general-purpose networks.

Application — what it does

Failed

The protocol operates a game called 'Ludo', explicitly described as a 'bet2win' game where players wager tokens to win a prize pool, which constitutes a direct gambling (maisir) mechanism.

Asset — what you own

Caution

Utility includes staking, NFT marketplace participation, and playing ecosystem games (including the gambling product). It also features an automatic reflection mechanism that redistributes transaction taxes to all holders, which is a scholar-debated mechanism.

Property Status (Māl)

Passed

The token is a native protocol position with ascertainable supply, fixed/rule-based mint authority, and established adoption. It has genuine lawful use within its NFT and staking ecosystem.

Revenue Purity

Caution

Revenue is generated from transaction taxes, NFT marketplace fees, and gaming fees. The exact share of revenue derived from the haram gambling product is unknown.

Legitimacy & Security

whitepaper

Passed

The official website, documentation, and tokenomics information were found and verified.

project audits

Passed

Audit and security information were found for the project.

social presence

Passed

The project maintains a multi-chain presence but remains a niche player with a smaller community compared to major meme coins.

Team & Ecosystem

team background

Caution

Project identity is confirmed, but specific team background details are not covered by the research.

Detailed Shariah Report

Overview

CateCoin is a cat-themed meme coin project that provides a decentralized platform for creators to monetize meme content through NFTs, alongside staking and gaming utilities. The CATE token is a native protocol asset used for participating in the NFT marketplace, earning transaction reflections, and playing ecosystem games.

Why This Verdict

CateCoin is rated 'No' (Non-Compliant) based on a three-layer Shariah screening of its infrastructure, application, and the asset itself. At the base layer, the underlying infrastructure (BNB Smart Chain, Ethereum, Solana) is neutral. At the asset layer, the token qualifies as recognized digital property (Mal) because it is an exclusive, protocol-recognized right of control that presently exists, is ascertainable, transferable, can be held and preserved, and carries lawful use within its NFT ecosystem. However, the asset fails at the application layer. Simply buying and holding the CATE token is considered Haram because the protocol directly operates a 'bet2win' game called Ludo, making gambling (maisir) a core business activity. Beyond holding, the ecosystem features several specific mechanisms. The Automatic Reflections mechanism is rated Doubtful; it automatically redistributes a percentage of every on-chain transaction tax to all holders, which is a scholar-debated yield model. The opt-in dApp Staking feature is also rated Doubtful, offering up to 15% APY funded partially by inflation and ecosystem fees. Finally, participating in the Ludo Bet2Win game is Haram, as players wager tokens to win a prize pool, constituting direct gambling.

Permissible Aspects

  • The underlying blockchain networks (BNB Smart Chain, Ethereum, Solana) are neutral, general-purpose infrastructures.
  • The token qualifies as recognized digital property, existing as a self-custodied, native protocol position with an ascertainable supply.
  • The project facilitates a decentralized NFT marketplace where meme creators can lawfully monetize their content.

Points of Caution

  • !The protocol directly operates a gambling product (Ludo), meaning the core business derives an unknown portion of its revenue from impermissible activities.
  • !The token features an automatic reflection mechanism that redistributes transaction taxes to all holders, a yield model that is debated among Shariah scholars.
  • !The opt-in dApp staking platform offers up to 15% APY funded by inflation and ecosystem fees, which requires a 32-day lockup and imposes a 20% penalty for early withdrawal.
  • !There are no public disclosures regarding the project's treasury, leaving it unknown whether the foundation holds fiat in interest-bearing bank accounts.
  • !The project team's background details are not fully disclosed, which warrants caution for investors evaluating the project's long-term legitimacy.

Purification Note

Because the core business activity involves operating a gambling product, holding the token is considered non-compliant, and purification cannot legitimize an inherently impermissible investment. If an investor currently holds the token and wishes to exit, any gains derived directly from the gambling revenue or the debated automatic transaction tax reflections should be donated to charity without the expectation of spiritual reward.

BOTTOM LINE

CateCoin is a non-compliant asset because its ecosystem directly operates a 'bet2win' gambling game, violating the Islamic prohibition against maisir. While the project offers a lawful NFT marketplace for meme creators, the integration of direct gambling and an automatic transaction tax reflection mechanism makes the core asset impermissible. Muslim investors should avoid holding or interacting with this token, noting that final religious authority rests with a qualified Shariah scholar.

How this verdict was reached

This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about CateCoin (CATE), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.

The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.

Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.

AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.