The post Forbes Lists 20 “Zombie” Tokens Valued at $1B: What You Should Know appeared first on Coinpedia Fintech News
Forbes listed 20 zombie coins, calling them good-for-nothing blockchains — They are unproven and have little utility other than speculative crypto trading. Among these are XRP, ADA, BCH, LTC, ICP, ETC, XLM, STX, KAS, THETA, FTM, XMR, AR, ALGO, FLOW, EGLD, BSV, MINA, XTZ, EOS. Despite high valuations, these tokens face questions about real-world adoption. Are they truly alive?
Let’s uncover the truth!
Crypto Zombies – Rising from the Grave?
Forbes’ comprehensive report highlighted 20 “zombie blockchains” within the cryptocurrency market, including Ripple’s XRP and Ethereum Classic. Despite their high market valuations, these cryptocurrencies demonstrate minimal real-world utility and user adoption.
Forbes didn’t hold back, even flagging Ripple Labs, the force behind XRP, as a major player in the world of crypto zombies. Despite XRP’s whopping $2 billion daily trading volume, Forbes argues that its main purpose remains speculative, lacking real-world usefulness.
Forbes’ report also reveals a startling fact: there are 50 blockchains valued at over $1 billion each, excluding Bitcoin and Ethereum. Out of these, at least 20 are labeled “functional zombies,” boasting a combined market value of $116 billion. But are they truly alive in any meaningful sense?
Also Read: Weak Growth, High Inflation: Is a Massive Crypto Crash Coming?
A Grim Reality Check
Diving deeper, Forbes highlighted Ethereum Classic, Tezos, and Algorand, among others. Despite their huge market caps, doubts arise when you look at their earnings. For example, Ethereum Classic only generated around $41,000 in fees in 2023, a far cry from its $4.6 billion market value.
Tezos, once the talk of the town with a massive $230 million raised in 2017, now faces a market cap of $1.2 billion, with fee earnings of just $177,653 in 2023. Algorand, once seen as Ethereum’s rival, tells a similar story, with fees totaling only $63,000 in 2023, despite its $2 billion market cap and half-billion-dollar treasury.
The Mystery of ‘Zombie Blockchains’
The term “zombie blockchains” perfectly describes these projects, stumbling forward in the crypto world with little to show for their existence. Among them, Ripple’s XRP stands out, initially positioned as a disruptor but now struggling to break free from its speculative image.
Forbes’ analysis highlights a troubling trend: the growing divide between market value and real-world usefulness in the crypto space. It raises important questions about projects like Tezos and Cardano, once hailed as Ethereum’s successors but now facing hurdles in gaining widespread acceptance despite their advanced tech and high valuations.
Operating without regulation or strong governance structures poses risks, as Ethereum Classic’s post-security breach struggles show. Forbes’ warning serves as a reminder of the precarious position these cryptocurrencies find themselves in, balancing on the edge of obscurity due to the mismatch between valuation and actual utility.
Read More: 85% of Altcoins Are in Historic Opportunity Zone: Santiment Report
The Verdict? Zombies Among Us
Forbes’ sobering assessment labels these cryptocurrencies as “zombies,” caught in a cycle of high valuations and low real-world impact. While this may seem harsh for projects like XRP and Cardano, the reality is clear: some struggle with utility, while others enjoy steadfast community support, blurring the lines between the living and the undead in the crypto world.