Rain
RAIN#201RAIN is the token of Rain, a prediction-market protocol where users bet on event outcomes.
- Market cap
- $9B
- Volume 24h
- $15.51M
- All-time high
- $0.01946
- −34.77% from ATH
- Circulating supply
- 709.24B of 1.15T
Fails our Shariah screening. Needs caution: nature of the asset and benefit and harm (maslahah). Fails: gambling (maysir), business model, excessive uncertainty (gharar), and usage.
- 2 pass
- 2 caution
- 4 fail
Verdict history
- Not halalCurrent
First publication
Fundamentals, market picture and news will appear here.
Halal analysis
Can a Muslim hold Rain?8 Shariah criteria
2 pass · 2 caution · 4 failHolding RAIN pays no interest and there is no staking or lending yield built into the token.
Riba means interest or any guaranteed increase on a loan. RAIN is a plain token: holding it pays nothing, and the token contract has no staking or reward function. Its value is meant to be supported by buybacks and burns funded from market fees, which is a question of gambling income (see maysir and business model), not of interest. Market fees are paid to creators, liquidity providers and resolvers of individual markets, not to RAIN holders as a return on a loan.
The whitepaper plans staking incentives and the largest corporate holder, Enlivex, said it wants to "activate" RAIN "for yield", but no such product was described in enough detail to assess, so this is noted as a data gap rather than counted as riba.
RAIN has only limited, disputed utility as a governance token, and religious bodies disagree on whether cryptocurrency is property (mal).
Mal is property that Islamic law recognises as having value and that can be owned and traded. RAIN is not a claim on any asset: Rain Foundation's MiCA white paper says it gives no ownership, profit or redemption rights, is not required to trade or create markets, and that DAO governance, its main stated use, was not yet active in March 2026. An earlier whitepaper said users must hold RAIN ("Trading Power") to trade, so the token's function is itself unclear. The protocol does work, but it is small: about $22 million is locked in it against a market value of about $8.9 billion.
Tier-1 bodies also disagree on crypto as property in general: Malaysia's SC Shariah Advisory Council treats digital currency without an underlying asset as tradable goods on registered exchanges, while Egypt's Dar al-Ifta, Turkey's Diyanet, the UAE's GAIAE and Indonesia's MUI prohibit dealing in cryptocurrency. Nothing shows RAIN is a pyramid scheme, so the status is caution, not fail.
RAIN is the token of a protocol built for betting on the outcomes of events, and its value is tied to betting volume.
Maysir is gambling: staking money on an uncertain outcome so that one side's gain is the other side's loss. Rain's own whitepaper describes exactly this: users put money on the possible answers to a question, prices follow the share of money on each answer, positions are called "wagers", there are no refunds, and winners receive a payout multiplier of 1 divided by the price they paid. This is not ordinary price volatility but the core product.
The token is built around it: half of the 5% fee on every market's volume is meant to buy back and burn RAIN, so RAIN's value depends on how much is bet, and the earlier whitepaper required holding RAIN to bet. CoinGecko lists RAIN under Gambling (GambleFi), and both screening firms that name Rain (ShariaQuant and CryptoUmmah) rate it haram for maysir.
All protocol income comes from fees on prediction-market bets, a clearly impermissible source, far above the 5% limit.
This criterion asks how the issuer or protocol earns. Rain earns only one kind of fee: 5% of the volume of each prediction market, plus a $1 fee when the AI oracle resolves a market. Half of that fee goes to market creators, liquidity providers and resolvers, and half is used to buy back and burn RAIN, which is the only way the protocol returns value to token holders. DefiLlama records about $1.5 million of such fees since launch, all from market trades. Because essentially 100% of revenue comes from gambling contracts, it exceeds the 5% threshold for clearly impermissible income.
Rain Foundation itself is funded by token sales and publishes no financial statements.
A foundation multisig controls most of the supply and treasury without an active DAO, analysts trace undisclosed moves of tens of billions of tokens, and Rain's own documents contradict each other.
Gharar is excessive uncertainty or hidden information in a deal. Some things are transparent: the token code is verified, upgrades are now disabled, and new minting is capped at 10% of burned tokens and goes to a disclosed treasury. The larger problems are control and disclosure. The MiCA white paper says the DAO was not active and a foundation-controlled multisig manages upgrades and the treasury; the ten largest holders, mostly vesting and multisig contracts, hold about 85% of supply.
L2BEAT traced about 86 billion RAIN, funded by the central RAIN distributor, into 3,205 identical Safes with the same owners, one of whom also signs a Rain liquidity Safe, and counts only about 95 billion RAIN as outside common control, against about 709 billion reported as circulating. Rain's documents disagree on whether RAIN is needed to use the app and on whether the DAO governs. The markets themselves add uncertainty: private markets are resolved only by their creator, and the AI oracle must pick an answer even when a question is ambiguous.
The main use of the protocol is betting on event outcomes, and RAIN has no other significant use.
This criterion looks at what the asset is actually used for. Rain's stated purpose is prediction and options markets that anyone can open on any event; Rain Foundation promoted its liquidity push ahead of the FIFA World Cup. The whitepaper also describes "incentive markets" that attach rewards to real-world outcomes, but these are presented as an addition to betting markets. RAIN's own uses are governance of this protocol and, in the earlier design, access to betting.
A front-end called Rain Trade operates under a lottery licence from Liberia, though its link to the protocol was not confirmed. Because the main purpose is gambling, the status is fail.
RAIN can be bought spot with full payment and held in a self-custody wallet.
This criterion asks whether the asset can be owned in a permissible way, separately from whether the asset itself is acceptable. RAIN trades spot on centralised exchanges such as Kraken, KuCoin and MEXC and on decentralised exchanges on Arbitrum, and it can be moved to a self-custody wallet where the owner controls it directly. Ownership does not depend on derivatives or leveraged wrappers. Market depth is thin compared with the headline value (about $24 million of daily volume against about $8.9 billion of market value), which is a liquidity risk rather than a structural problem.
Forecasting markets have some informational value, but serious allegations of price manipulation and a very thin real economy behind a large valuation weigh heavily.
Maslahah weighs public benefit against harm. Prediction markets are argued to aggregate information about future events, and Rain lets anyone build them. Against this, the harms are significant. L2BEAT's researchers called the token heavily manipulated and exclude most of its supply from Arbitrum's value secured as controlled by one group. On-chain investigator ZachXBT alleged that deployer-linked wallets ran liquidity positions that suggest price manipulation and that team wallets connect to earlier failed projects; Rain had not responded publicly.
Protocol activity is small (about $22 million locked and about $1.5 million of lifetime fees) against a market value of about $8.9 billion, so retail buyers bear a high risk of loss. These claims are not proven in any court, so the status is caution; gambling harm itself is counted under maysir.
How you can use it
Tap a card for the ruling and sourcesRAIN is widely available spot with full payment and delivery, but spot is acceptable only for a HALAL or DOUBTFUL asset. Because RAIN is rated HARAM, buying it spot does not pass.
No exchange-traded fund holding RAIN was found. Enlivex, a Nasdaq-listed company, holds RAIN as a treasury asset, but it is an operating company, not a fund. Any fund would inherit the HARAM rating of the asset.
RAIN is not used for payments in practice. Tier-1 bodies such as Indonesia's MUI rule that using cryptocurrency as currency is not permissible.
RAIN has no native staking: it does not secure a network. Exchange "staking" or "earn" products for RAIN pay rewards from sources that are not validation work, and the token itself is rated HARAM. Staking in Rain disputes means posting collateral in a betting market, which is part of the maysir problem.
Margin trading is never acceptable: it is a deferred exchange with borrowed money and leverage (AAOIFI SS 20).
Whether or not RAIN futures are offered on a given venue, futures, perpetuals and options always fail under AAOIFI SS 20. The event contracts traded inside Rain are themselves bets on outcomes.
Lending RAIN for a fixed or guaranteed return is riba. Providing liquidity to Rain markets earns a share of betting fees, which fails for maysir.
Any RAIN yield comes either from lending (riba) or from fees on prediction-market bets (maysir); both fail.
Scholars quotes
Penggunaan cryptocurrency sebagai mata uang hukumnya haram, karena mengandung gharar (ketidakjelasan), dharar (bahaya) dan bertentangan dengan Undang-Undang nomor 7 tahun 2011 tentang Mata Uang dan Peraturan Bank Indonesia nomor 17 tahun 2015 tentang Kewajiban Penggunaan Rupiah di Wilayah Negara Kesatuan Republik Indonesia.Sebagaimana mata wang yang lain, mata wang digital hendaklah tidak digunakan sebagai bayaran kepada barangan, perkhidmatan dan aktiviti tidak patuh Syariah seperti pembelian dadah, pelacuran, perjudian dan pendanaan aktiviti keganasan serta penggubahan wang haram.The SAC has also resolved that investment and trading of Digital Assets that fulfil the above requirements and which are traded on Digital Asset Exchange (DAX) registered with SC are permissible.Third: In light of the above and given the significant risks associated with this type of currencies and the instability of their transactions, the Council of the Academy recommends pursuing research and studies on issues affecting its ruling.Bitcoin is a digital currency that does not meet the legal and Sharia criteria that make it a currency subject to the rulings of dealing with official legal currencies recognized internationally.بناءً على ذلك: فلا يجوز شرعًا تداول عملة "البتكوين" والتعامل من خلالها بالبيعِ والشراءِ والإجارةِ وغيرها، بل يُمنع من الاشتراكِ فيها؛ لعدمِ اعتبارِها كوسيطٍ مقبولٍ للتبادلِ من الجهاتِ المخُتصَّةِ، ولِمَا تشتمل عليه من الضررِ الناشئ عن الغررِ والجهالةِ والغشِّ في مَصْرِفها ومِعْيارها وقِيمتها، فضلًا عما تؤدي إليه ممارستُها من مخاطرَ عاليةٍ على الأفراد والدول.Holding RAIN is Haram because the protocol's core business is facilitating prediction markets—wagering on uncertain future events—which constitutes Maisir (gambling).According to research and opinion of experts so far, cryptocurrency is not considered ‘ maal ’ (wealth) in Sharia.Muhammadiyah memandang transaksi dan investasi kripto pada dasarnya mubah (boleh) tetapi dengan syarat tertentu.The opinion on this is the same as doing the same with any halal assets such as shares – 1) is permissible, 2) is more debatable and there are differing opinions on short-term trading.Our current position is 'tawaquf'; we can't say it is halal or haram, but we say it is better not to engage in itAs I mentioned at the beginning of this article it is not necessary to substantiate the permissibility of something as long as there are no prohibited factors involved in it or surrounding it.AI-assisted analysis checked against sources. Not a fatwa or investment advice.
Where it trades
5 exchanges from our coverage · no referral links
GateCentralized · RAIN/USDTVolume 24h$257.92KReliability5.9Halal productNo halal product
BingXCentralized · RAINPROTOCOL/USDTVolume 24h$7.21MReliability5.8Halal productNo halal product
WhiteBITCentralized · RAIN/USDTVolume 24h$186.16KReliability5.7Halal productNo halal product
KuCoinCentralized · RAIN/USDTVolume 24h$890.52KReliability5.6Halal productNo halal product
MEXCCentralized · RAIN/USDTVolume 24h$1.57MReliability4.7Halal productNo halal product
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Listings as of Sep 18, 2026
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