Ethereum hosts Polymarket, you classify Ethereum as Halal. Kaito only provides data to Polymarket and builds a prediction market alongside its AI platform. Why is Ethereum Halal but Kaito Haram ?
Question context
CoinStudy's answer
Research opinion from the CoinStudy Sharia team. Not a fatwa.
This is a genuinely sharp observation and it points to something important about how CoinStudy applies the infrastructure neutrality principle. Let us work through it precisely.
Ethereum is a general-purpose smart contract platform. It hosts thousands of applications across every conceivable category: NFT marketplaces, supply chain tracking, digital identity, tokenized real-world assets, charity platforms, decentralized exchanges for permissible assets, and yes, also DeFi lending protocols and prediction markets that CoinStudy classifies as Haram. Ethereum's purpose is providing neutral programmable infrastructure that any developer can use for any application. Chairman Dr. Usman Quddus reviewed Ethereum and confirmed it permissible, stating that the direct causes of prohibition are absent and that it provides equal economic rights to Muslim and non-Muslim society alike.
The infrastructure neutrality principle holds precisely because Ethereum's mission is not to be a lending platform or a prediction market. It is to be programmable infrastructure for any application. When Polymarket runs on Ethereum, Polymarket is using neutral infrastructure for a prohibited purpose. Ethereum did not build Polymarket and Ethereum does not describe Polymarket as the next stage of Ethereum's development.
Kaito's situation is different for one decisive reason: Kaito is building its own prediction market called Kaito Markets as its primary 2026 product. This is not a third-party application using Kaito's neutral infrastructure. This is Kaito building its own prediction market, integrating it into its own website, and describing it as Kaito's core strategic direction after Yaps collapsed.
The test that distinguishes neutral infrastructure from prohibited product operator is this: is the platform building the prohibited product as its own, or is the platform providing neutral capabilities that others use to build their own products?
Ethereum provides neutral capabilities. Kaito is building the product itself.
A concrete parallel helps clarify this. If Amazon Web Services hosts a gambling website on its servers AWS remains neutral infrastructure and permissible. If Amazon built its own gambling website and made it Amazon's primary strategic product, Amazon would be operating a gambling platform regardless of whether the web hosting infrastructure it runs on is the same. Kaito is in the second position, not the first.