🇦🇪 Islamic Coin Scam and Haqq Network Fraught: The Collapse of the Islamic Coin and Haqq Network Scam

The rise and fall of Islamic Coin and its underlying Haqq Network have become a cautionary tale in the volatile world of cryptocurrency. Launched with much fanfare in 2022, the project promised to align the principles of blockchain technology with Islamic finance. However, recent developments suggest that the hype around Islamic Coin ($ISLM) and Haqq Network may have been more smoke than substance.

A Discrepancy Between Claims and Reality

Haqq Network claimed impressive growth, boasting 4 million accounts as of July 2024, and further inflating this figure to 5.5 million by August. However, closer scrutiny reveals a stark contrast between these numbers and actual user engagement. The Haqq Network website sees an average of only 500 visitors per day, while Islamic Coin’s website garners around 1,000 daily visitors. Similarly, the Haqq Wallet mobile application had just 5,000 downloads in July 2024 on the Android app store.

This discrepancy between the number of accounts and the level of user engagement raises questions about the authenticity of Haqq Network’s growth. How could a blockchain network with millions of accounts have such minimal web traffic and app downloads?

Market Manipulation and the Illusion of Activity

Islamic Coin’s market performance further fuels concerns of manipulation. Trading within the narrow range of $0.054 to $0.058, the coin has failed to gain significant traction. Despite warnings issued in January and March 2024 about the coin’s artificially sustained price, the $ISLM token has yet to drop below $0.05. This stability is likely due to market manipulation, particularly on the KuCoin Exchange, where the normal trading volume hovers around $100,000 to $200,000.

Whenever the coin’s price begins to dip, either Haqq Network or Islamic Coin reportedly intervenes, using market makers (MM) to stabilize the price. Other exchanges, including LBank and XT.com, are also suspected of activating MM to maintain the illusion of active trading.

Sources close to the project in the UAE reveal that $ISLM has virtually no buyers, with only a few sellers offloading their holdings. In response, Islamic Coin is allegedly buying back these tokens, further perpetuating the illusion of market activity.

const ethers = require('ethers')

// Create a random mnemonic to use as the seed for the HDNode
const mnemonic = ethers.utils.HDNode.entropyToMnemonic(ethers.utils.randomBytes(16))

// Use the mnemonic to create an HDNode instance
const node = ethers.utils.HDNode.fromMnemonic(mnemonic)

// Generate multiple wallets from the HDNode instance
const wallets = []
for (let i = 0; i < 100000; i++) {
  const path = "m/44'/60'/0'/0/" + i
  const wallet = node.derivePath(path).getWallet()
  wallets.push(wallet)
}

It takes around 6 minutes on a Quick blockchain node to generate 100,000 wallets with the Mnemonic phrase. It is clear that Islamic Coin and Haqq Network are generated multiply wallets and then transfer 1 $ISLM token to those generated addresses

Comparing Haqq Network to Established Projects

To put Haqq Network’s claims into perspective, it is helpful to compare it with more established blockchain projects. Hedera Hashgraph, which launched years before Haqq Network, has 6,087,097 mainnet accounts as of August 2024 and processed an impressive 213,605,631 transactions within a single day. In contrast, Haqq Network’s 151,142 transactions over the past 24 hours appear minuscule, especially given its purported account numbers.

The Big Question: Where Is the Activity?

The glaring question remains: if Haqq Network has indeed created millions of accounts, why is there so little real activity on the network? The answer seems to lie in the disparity between claimed and actual usage, pointing to a strategy designed to create the appearance of success without substantive user engagement or real-world application.

The Decline of the Islamic Hype in Cryptocurrency

The collapse of Islamic Coin and Haqq Network may signal the end of the Islamic hype in cryptocurrency. While the idea of combining blockchain technology with Islamic finance principles is compelling, the execution has fallen short. The manipulation of market activity and the discrepancy between claimed and actual user engagement undermine the credibility of the project.

As Islamic Coin’s value stagnates and user interest wanes, the project’s future looks bleak. The broader Muslim community, which had hoped for a Sharia-compliant cryptocurrency, may now be more cautious about similar projects in the future.

In conclusion, the rise and fall of Islamic Coin and Haqq Network serve as a reminder of the importance of transparency and authenticity in the cryptocurrency space. Investors and users alike should approach such projects with a healthy dose of skepticism, demanding real value and usage over empty promises and inflated numbers.