A key part of HAQQ Network’s expansion project is the launch of its Gold token in June, marking a significant step in the network’s larger goal of tokenizing Real-World Assets. HAQQ Network Co-Founder and CEO Alex Malkov shares their exciting and bumpy ride from inception to date.
By Alex Malkov
Since the official launch in October 2023, Haqq Network has experienced a series of events and challenges that have shaped our journey.
Our launch was met with tremendous enthusiasm from our vast and diverse community, spanning over 1.5 million members.
It is a community that believes in our vision of creating a blockchain ecosystem that adheres to the principles of Islamic finance.
However, our launch was met with a significant hurdle in the form of a VARA investigation.
While VARA acted within its rights as a reputable regulatory body, we had initially ensured we worked circumspectly, which was our reason for selecting to work with Republic for our sale.
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.
Our efforts eventually led to VARA announcing the end of the investigation without further enforcement, a testament to our commitment to transparency and regulatory compliance.
As we scaled the VARA hurdle, we encountered additional difficulties in our efforts to list ISLM on various exchanges. Several top-tier exchanges that had previously committed to listing ISLM withdrew their support just before the listing date based on unfounded risks.
Despite many challenges, we successfully listed ISLM on several top-tier exchanges, and we remain committed to expanding our listing strategy and improving the accessibility and liquidity of ISLM for our global community.
This will be even more efficient and fruitful after the positive resolution of the mentioned regulatory matters.
On the media front, we were faced with a targeted campaign of misinformation and slander from a particular media outlet. When we refused to engage with their unfounded allegations, they offered us a “promotion” in exchange for a substantial sum.
We rejected this offer categorically, as it goes against our values of transparency and integrity.
Despite this media outlet’s efforts to tarnish our reputation, we stand firm in our commitment to our vision and values.
We will continue to fight against misinformation in all its forms, united in our goal of building a more inclusive and equitable financial ecosystem.
Our community has remained our greatest strength throughout our challenges. Its unwavering support and trust in our vision have been instrumental in helping us weather the storms and emerge stronger.
On behalf of the Haqq Network team, I express my profound gratitude for your resolve in our vision. Our achievements are a testament to your resilience and dedication to vision.
Despite the challenges and obstacles we encountered along the way, the Haqq Network has achieved significant milestones that demonstrate the strength and resilience of our project:
Before our launch, we successfully raised over USD 200 million in a private token sale and secured an additional USD 200 million on an investment deed basis. This significant investment from our community and institutional partners showcased the strong belief in our vision and the potential of Islamic finance in the Web3 space.
We have forged strategic partnerships with high-profile organizations in Islamic finance and Web3.
These partnerships, which include collaborations with DDCAP Group, FAMBRAS Brazil, SUSHI, GoMeat, and many others, have positioned us as a leading player in the Islamic DeFi industry and provided us with valuable resources and expertise to advance our mission.
We have also made significant strides in building out our ecosystem, with the launch of the Haqq Wallet and several other key products in the pipeline.
Despite the challenges posed by the VARA investigation, we have remained committed to engaging with regulators and ensuring compliance with all relevant laws and regulations. Our efforts to work with VARA and provide all necessary documentation showcased our commitment to transparency and regulatory compliance, setting us apart from many other projects in the space. We’ve successfully built a regulated vehicle for stablecoin issuance and finalizing licensing processes in several key regions for upcoming activities.
As we progress, I am delighted to share some initiatives we are actively exploring, focused on building on our achievements and addressing the challenges we have faced head-on. Our strategy for the coming months and years is centered around three key pillars:
Product Development and Ecosystem Expansion
We are committed to delivering a suite of products and services that meet the needs of our community and advance the cause of Islamic finance in the Web3 space. Our upcoming products include:
Haqq Wallet: This user-friendly, feature-rich, non-custodial wallet is designed to securely store, trade, and earn rewards with ISLM tokens and other crypto assets like BTC, ETH, and various EVM assets. As a halal yield app, it enables users to stake their ISLM and earn yields that can be natively swapped into BTC, ETH, OSMO, and other supported assets. Looking ahead, we aim to enhance user engagement by integrating lifestyle features tailored to local markets, further increasing retention and frequency of use.
Telegram Bot: A convenient way for users to acquire ISLM tokens directly within the Telegram app, lowering the barrier to entry for new users and facilitating the creation of Telegram-based wallets and basic functions like token swaps.
Together with our partner Brighty™, we have launched VISA cards denominated in ISLM for European residents.
We are initiating a pilot project in select countries with limited access to fintech, enabling the prepaid Visa cards denominated in ISLM and stablecoins on Haqq Network.
Real-World Assets (RWA): We’re set to launch our gold token in June 2024, allowing users to exchange it for real physical gold with delivery.
This token will be accessible through the Haqq Wallet and is designed as an appealing value store product. It will also serve a practical role in the Islamic Interbank Market, where banks can utilize tokenized commodities as a more efficient alternative to classical ones for interbank financing. Moving forward, we aim to expand this offering to include other commodities and potential securities in the future.
P2P Loans: We are developing a halal version of a lending platform inspired by the framework of existing renowned platforms to facilitate peer-to-peer (P2P) lending. Loans play a critical role in enabling business growth, especially in regions where access to traditional banking services is limited.
By providing a platform for P2P loans, we aim to stimulate growth within the informal economy, a sector that thrives in many areas where Haqq’s products and vision are gaining traction.
Strategic Partnerships and Collaborations
We will continue to forge vital partnerships and collaborations with leading organizations in the Islamic finance and Web3 space. The main areas we are excited to explore include blockchain-based solutions for Islamic financial institutions:
– Smart contract-based Murabaha transactions to streamline processes, reduce paperwork, and ensure Sharia compliance.
– Tokenization of assets for Musharakah and Mudarabah contracts, enabling partnerships and profit-sharing arrangements based on real-world assets.
– A commodity-fueled Tawarruq platform, leveraging our Gold and other commodity tokens to facilitate Sharia-compliant transactions between Islamic financial institutions, brokers, and traders.
– Sharia-compliant asset-backed tokens, Sukuk issuance and management solutions.
We are actively enhancing expert advice to help us develop these products, ensuring they meet the needs of the Islamic finance industry.
Community Engagement and Education
We recognize that our community is our greatest treasure, and we are committed to fostering a vibrant and engaged community that is in tandem with Haqq Network’s growth. In our next phase, we will roll out various community engagement and education initiatives, from local meetups, online forums and robust educational content.
All these will align with our mission to help our community learn and benefit from the Haqq Network’s expansion. To drive adoption and growth, our localisation strategy will target key regions, including Nigeria, Indonesia, Turkey, and Malaysia.
Notes from the Editor: This feature is an extract from the full article which you can access here.
