HAQQ Network’s Renewed Vision: The Loudest Islamic Web3 Project of 2023 Shares It’s Second Phase Vision

HAQQ Network's Renewed Vision: The Loudest Islamic Web3 Project of 2023 Shares It's Second Phase Vision

In 2023, the HAQQ Network and its native cryptocurrency, Islamic Coin (ISLM), emerged as the most prominent Islamic Web3 project globally. Its ethics-first and Shariah-compliant approach largely appealed to the global Muslim population, who always felt a lack of inclusivity in the rapidly developing Web3 and blockchain space. 

The project laid a strong foundation last year, receiving significant media coverage across global tier-1 crypto publications and major fintech outlets in the Middle East and establishing a community of over 1.5 million members. Islamic Coin’s advisory board also boasted several members of the UAE ruling families. This robust foundation had a tangible impact on the project’s presale phase, as ISLM raised over $200 million in private sales and an additional $200 million secured through an investment deed. 

However, since its launch, the project has seen several challenges and unsubstantiated allegations impacting its growth in the past six months. Addressing these challenges most recently, HAQQ’s co-founder Alex Malkov unveiled a comprehensive roadmap and a strategy to set Islamic Coin back in motion. 

What Were the Challenges for Islamic Coin in 2023?

Islamic Coin had a trial by fire right out of the gate. Despite a strong technological foundation, growing community support, and positive presale rounds, the Virtual Asset Regulatory Authority (VARA) launched a rigorous investigation into the project. However, the HAQQ network effectively cooperated with the regulators, which led VARA to end the investigation without any enforcement or allegations. 

Despite the challenges posed by the investigation, we remained committed to cooperating with the regulator and providing all necessary documentation to prove our compliance with the VARA rulebook,” said Alex Malkov. 

The negative fallout from the VARA investigation impacted Islamic Coin’s listing efforts. Initial agreements with top-tier exchanges faltered as these platforms expressed last-minute concerns over perceived risks, leading to unexpected delays and complications in making ISLM available to a broader audience.

Amid these trials, the project also faced targeted negative media coverage. A specific media outlet launched a disinformation campaign against HAQQ, which the network’s leaders refused to quell through paid promotions, standing firm in their values of transparency and integrity. 

We will continue to fight against misinformation and Islamophobia in all its forms, united in our goal of building a more inclusive and equitable financial ecosystem,” said Malkov. 

Moving past these adversities, HAQQ Network has emerged with renewed focus and a clear vision for the future. The team has developed a comprehensive roadmap that addresses past challenges while setting the stage for substantial growth and innovation in the Islamic financial sector. 

HAQQ’s Vision: An Ambitious Roadmap

Central to this strategy is launching a gold token in June, a significant development in the HAQQ network’s broader move towards the tokenization of Real-World Assets (RWA). According to the roadmap, this initiative aligns with Islamic financial principles, which emphasize real economic activity and asset backing in financial transactions. Users will be able to exchange the token for real gold; it will also integrate other investment commodities and potential securities in the future. With this launch, HAQQ wants to take blockchain and Web3 advancements towards tangible real-world applications. 

Alex Malkov highlighted the significance of this launch in his latest community blog, noting that the gold token will not only serve as a reliable store of value but will also play a critical role in the Islamic Interbank Market. This market, vital for the functioning of Islamic financial institutions, will benefit from the tokenized commodities as they offer a more efficient and transparent alternative to traditional asset exchanges.

Beyond tangible assets, HAQQ Network is also set to tokenize Islamic financial products. This process involves converting financial instruments (e.g. Sukuk) into blockchain tokens, thereby enhancing the liquidity, accessibility, and efficiency of these products. Tokenization allows for fractional ownership, broader distribution, and simplifies compliance with Shariah law by embedding the compliance rules directly into the token’s smart contracts.

Adding to these innovations, HAQQ has announced the introduction of VISA cards denominated in ISLM, specifically targeting EU residents. These cards represent a significant step towards integrating Islamic digital assets with conventional financial services, making it easier for users in the European Union to transact and manage finances in accordance with Islamic law. 

Listings, HAQQ Wallet, and Shariah-Compliant User-Centric Features

Despite facing numerous hurdles, HAQQ Network has achieved notable success that underscores its resilience. Islamic Coin has been listed on various cryptocurrency exchanges. This includes prominent centralized exchanges like Kucoin, LBank, XT, and MEXC, as well as decentralized platforms such as Sushi, Osmosis, and Uniswap. These listings enhanced the token’s liquidity, visibility, and appeal.

Furthermore, the launch of the non-custodial HAQQ wallet represents a pivotal development in empowering users. Available in both Apple Store and Google Play, the HAQQ wallet provides a secure environment where users retain complete control over their assets. This user-centric approach aligns with the network’s transparency and security ethos, ensuring participants have full autonomy over their digital assets without intermediation.  Moreover, Haqq Wallet is in a good position to become the leading app in certain regions (Nigeria, Indonesia, Turkey) with its approach of targeting non-crypto users by using social login instead of mnemonic/seed phrases, and also allowing users to recover the wallet if they lose access to their device.

One of the most engaging features of the HAQQ wallet is its staking functionality, which allows ISLM holders to actively participate in the network’s security and governance while earning rewards. In addition to staking, ISLM holders can join liquidity pools on DEXs to earn what is termed ‘halal yield.’ This concept refers to the returns generated in a manner compliant with Islamic financial principles, which prohibit interest (Riba) and emphasize ethical investment. The halal yield is thus structured to align with these principles, offering a way for Muslim investors to engage with the digital economy without compromising their values.

To Sum It Up 

As we review the journey and forward-looking strategies of the HAQQ Network and its Islamic Coin (ISLM), the project’s resilience is evident. The ambitious roadmap for 2024 and beyond sets a strong foundation for HAQQ’s comeback through the development of new products and the upcoming overall expansion of the ecosystem. 

Looking ahead, the confidence in HAQQ Network’s potential is well-founded. With its strategic initiatives and ongoing community engagement, the network is well-positioned to redefine Islamic finance within the Web3 ecosystem, promising a future where financial inclusivity and compliance with the Shariah law go hand in hand. 

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