Is Metronome Synth USD halal?
Metronome Synth USD is a synthetic dollar that keeps its value through hedging with derivatives. It is issued as a token on Ethereum.
Metronome Synth USD fails a hard rule of our screen on the Riba-free criterion (30 out of 100). Tagged as derivatives, perpetuals or a synthetic asset. These usually involve leverage, funding payments or interest.
Shariah screen result
mean of the five criteria
Tagged as derivatives, perpetuals or a synthetic asset. These usually involve leverage, funding payments or interest.
Small (market value about $45.9 million). Thin trading adds uncertainty (gharar).
Trading contracts without ownership resembles speculation on price alone.
It is meant to be backed one-for-one by reserves.
Holding and sending a stable digital currency is a permissible use.
How this was made: we scored the coin's public category tags and market size against the same five criteria and thresholds we use in our reviewed screen. Nobody has yet read its whitepaper or checked its revenue. This is a screening result, not a fatwa. Scholars may reach different views, so check with a qualified scholar before relying on it.