News
Forbes Lists 20 ‘Zombie’ Tokens Worth $1 Billion: What You Should Know
Forbes listed 20 zombie coins, calling them good for nothing blockchain — They are unproven and have little use beyond speculative cryptocurrency trading. Among them 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 really alive?
Let’s find out the truth!
Cryptozombies: rising from the grave?
The Forbes Comprehensive relationship highlighted 20 “blockchain zombies” in the cryptocurrency market, including Ripple’s XRP and classic Ethereum. Despite their high market valuations, these cryptocurrencies demonstrate minimal real-world utility and user adoption.
Forbes didn’t hold back, even reporting Corrugation laboratories, the force behind XRP, as a major player in the crypto-zombie world. Despite XRP’s massive daily trading volume of $2 billion, Forbes argues that its primary purpose remains speculative, devoid of real-world utility.
The Forbes report also reveals a surprising fact: there are 50 blockchains valued at over $1 billion each, not including Bitcoin AND Ethereum. 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?
Read also: Weak Growth, High Inflation: Is a Massive Cryptocurrency Collapse Coming?
A sad reality check
Dive deeper, Forbes highlighted Classic Ethereum, TezosAND Algorand, among others. Despite their huge market capitalization, questions arise when looking at their earnings. For example, Ethereum Classic only generated about $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 raise in 2017, now faces a market capitalization of $1.2 billion, with fee earnings of just $177,653 in 2023. Algorand, once seen as Ethereum rival, tells a similar story, with fees totaling just $63,000 in 2023, despite its $2 billion market capitalization and half a billion dollar treasury.
The mystery of “zombie blockchains”
The term “zombie blockchain” perfectly describes these projects, which advance into the world of cryptocurrencies with little to prove their existence. Prominent among these is Ripple’s XRP, initially positioned as a disruptor but now struggling to free itself from its speculative image.
Forbes’ analysis highlights a worrying trend: the growing gap between market value and real-world utility in the cryptocurrency industry. This raises important questions about projects like Tezos and Cardano, once hailed as successors to Ethereum but now face hurdles in gaining widespread acceptance despite their advanced technology and high valuations.
Operating without regulation or strong governance structures carries risks, as demonstrated by Ethereum Classic’s post-security breach difficulties. Forbes’ warning serves as a reminder of the precarious position these cryptocurrencies find themselves in, teetering on the edge of obscurity due to the discrepancy between valuation and actual utility.
To know more: 85% of Altcoins are in Historic Opportunity Zone: Santiment Report
The verdict? Zombies among us
Forbes’ disappointing valuation labels these cryptocurrencies as “zombies,” trapped 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 consistent community support, blurring the lines between the living and the undead in the world of cryptocurrencies.