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Is Algorand (ALGO) halal?

Permitted

The six conditions are met for a spot purchase.

Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/07/2026 and not reviewed by a human.

Open the evidence file

The asset

Native currency of the Algorand network (layer 1 smart-contract platform, pure proof of stake); native, no contract to scan Issuer: Algorand Foundation US, Inc., a Delaware company registered on February 24, 2022 (named as the reference entity in the MiCA white paper by Crypto Risk Metrics GmbH; executive: Staci Warden, chief executive officer); the SEC's 2023 complaint attributes the 2019 token sale to “Algorand Foundation Ltd.”; Algorand Technologies develops the protocol, independently of the Foundation according to the official FAQ; protocol founded by Silvio Micali according to the SEC.

ALGO pays transaction fees (0.001 ALGO minimum), serves as a participation deposit for consensus (pure proof of stake) and for governance. Supply capped at 10 billion, all created at launch (June 2019) and released gradually: according to CoinMarketCap (October 7, 2026, 11:02 UTC), rank 64, 9.06 billion in circulation. The Foundation held 1,134,532,000 ALGO on December 31, 2025 (about 11.3% of the supply), according to the MiCA white paper, which cites its transparency report. Fees are collected in a special account (fee sink); block proposal rewards are paid from it. Native currency: no contract, so the GoPlus scan does not apply.

Why this verdict

  1. Permissible purpose : met. ALGO is used to pay the fees of each transaction on the Algorand network, which hosts smart contracts and tokens: real use described by the official documentation. No gambling, interest-bearing lending or impermissible content is found.
  2. No riba : met. Holding ALGO pays nothing in itself: no interest or share of revenue is attached to simple holding. A reward is paid only to the account that proposes a block, has at least 30,000 ALGO and has chosen to receive it; it comes from the fee account (fee sink), partly topped up by the Foundation: a product covered in autres_constats. No loan is involved.
  3. No gambling : met. A spot purchase is of a network's native currency, with a capped supply, transferable between accounts; it is not a contract on a price difference. In the SEC's 2023 complaints against Bittrex and against Binance, ALGO was among the assets presumed to be securities; the one against Binance was closed in 2025 (see c6). ALGO is not on the list of examples of “digital commodities” in the SEC-CFTC interpretation of March 17, 2026, a non-exhaustive list.
  4. No excessive gharar : met. The issuance rules (supply capped at 10 billion, all created at launch, gradual release) and the Foundation's role are published; the Foundation publishes a quarterly transparency report (latest: second quarter 2026) and its treasury accounts. The Foundation's leadership is identified and the FAQ distinguishes the Foundation from Algorand Technologies, which develops the protocol. No anonymous party was found controlling issuance, the treasury or administration keys. Point of attention: the Foundation holds about 11.3% of the supply and funds block rewards.
  5. Real ownership : met. ALGO is held in wallets where the user keeps the keys (the FAQ points to self-custody hardware and software wallets) and is transferred without technical restriction. The choice of purchase platform was not studied.
  6. No fraud or manipulation : met. No ruling establishes deception toward ALGO buyers. The SEC named ALGO among presumed securities in its 2023 complaints against Bittrex and Binance (the Foundation's 2019 sale is described there); neither the Foundation nor Algorand Technologies was a defendant; the SEC dropped the action against Binance on May 29, 2025, with prejudice (“with prejudice”), as a matter of discretion and with no judgment on the merits. The AMF blacklist returns no result for “algorand.” Dropped accusation: information only (A.8).
  7. Réseau ouvert et généraliste : met. un outil neutre

Tolerance case

T1. ALGO is the native currency of a network where anyone can take part in consensus and deploy contracts and tokens (general-purpose), and whose fees are paid in ALGO. The Foundation and Algorand Technologies (protocol developer) weigh on the network (11.3% of the supply, block rewards topped up by the Foundation), but ALGO gives no right to any income from these entities; no share of impermissible revenue is published (T2 cannot be quantified, not applied).

Contract security scan

GoPlus scan not performed: ALGO is the native currency of the Algorand network, with no ERC-20 or BEP-20 contract (CoinMarketCap gives only the identifier “0” of the native token as the contract); rule A.8 excludes the scan for native currencies. The check relies on the Foundation's identity, the 10 billion cap and the Foundation's quarterly transparency report.

Opinions found during the research

Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.

What could not be verified

Sources read

Other cryptos analyzed

General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology