A new way of halal investing in the crypto space.
We would like to announce our latest product – 108 Token to the Islamic community. 108 Token is an innovative way for buyers to gain exposure to the broader cryptocurrency markets at lower volatility. 108 Token functions as an ERC-20 ETFstyle token which tracks the performance of the top 15 cryptocurrency assets. The token is a solution which addresses problems including the fact that cryptocurrencies are difficult to invest in, with too many options and vast amount of research required before investing in any particular coin. It is being developed by a passionate team of developers and fixed income traders whose credentials include Georgia Tech, MIT Sloan and INSEAD, among others. The team is advised by the likes of Eyal Hertzog of Bancor fame and Balaji Srinivasan of Counsyl.
Historical Performance of 108 Token
Backtesting for portfolio NAV was carried out for a period of 330 days starting from January 1, 2017 to Nov 26, 2017. The closing prices of the crypto assets were taken from CoinMarketCap and the Y2050 supplies were taken from Onchainfx for the analysis. The below strategy was then finalized –
Number of coins = Top 15 by supply-adjusted market cap
Cap weight on each constituent = 20%
Frequency of rebalancing = monthly
To find out more about the methodology, please visit our website.
Buying 108 Token is Halal
We believe that 108 Token may be a good fit for buyers seeking exposure to the crypto asset class in a manner compatible with Islamic scripture since 108 Token by its very design is a way of preserving wealth, which is one of the five essential maqasid in the category of daruriyyat. Indeed it provides an easy and better way for Muslim investors to access crypto assets. At a high level, 108 Token represents exposure to the top 15 public blockchains in a dynamically rebalancing manner, which should reduce price volatility for the holder relative to holding any single token, thus enabling a more efficient way of preserving wealth.
The process of composition of the 108 Token basket involves zero leverage, since all transactions are conducted in the spot market without interest of any type, a key consideration for Islamic investors. Furthermore, no blockchain project representing exposure to the adult entertainment, alcoholic beverages, weapons industry or any such industry that can be classified as haram will be considered for inclusion within the 108 Token basket.
If and when any token that derives its value directly and primarily from interest-based lending becomes eligible for inclusion into 108 Token, buyers will have the option to redeem their 108 tokens for Ether and choose not to take that exposure.
We may choose to commission a legal opinion by a respected Islamic scholar certifying 108 Token’s compliance with the Shariah at a later time.
Where to Buy
Photo Credits: David Rodrigo on Unsplash