Forbes Lists 20 Zombie Tokens With A Market Value Of More Than $1B
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The post Forbes Lists 20 Zombie Tokens With A Market Value Of More Than $1B appeared first on Coinpedia Fintech News
Forbes listed 20 zombie coins, calling them good-for-nothing blockchains â 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?
Letâs uncover the truth!
Crypto Zombies on Rise
Forbesâ comprehensive report highlighted 20 âzombie blockchainsâ within the cryptocurrency market, including Rippleâs XRP and Ethereum Classic. Despite their high market valuations, these cryptocurrencies demonstrate minimal real-world utility and user adoption.
To everyoneâs shock, Forbes labeled Ripple Labs, the firm behind XRP, as a significant crypto zombie. Despite XRPâs daily trading volume of approximately $2 billion, Forbes claims that the tokenâs main function is âspeculativeâ and lacks substantial utility.
Notably, Forbes has reported that 50 blockchains, excluding Bitcoin (BTC) and Ethereum (ETH), are valued at over $1 billion each, with at least 20 termed as âfunctional zombies.â These 20 blockchains, with âlimited user bases,â hold a collective market value of $116 billion.
Moving on to the detailed breakdown, they highlighted bigger projects like Ethereum Classic (ETC), Tezos, and Algorand, among others. Despite their high market capitalizations, their fee earnings raise doubts about their utility. For instance, ETCâs fee generation of less than $41,000 in 2023 contrasts with its $4.6 billion market value.Â
Tezos, having raised $230 million in a 2017 ICO, now holds a $1.2 billion market cap, but its fee earnings for 2023 were only $177,653. Algorand, once touted as an âEthereum killer,â faces similar challenges, with blockchain transaction fees totaling just $63,000 in 2023, despite a $2 billion market cap and $500 million treasury.
Analyzing Zombie Blockchains
The term âzombie blockchainsâ characterizes these projects, which continue to operate and trade without evidence of fulfilling practical purposes. Among the cryptocurrencies scrutinized, Rippleâs XRP stands out, initially positioned as a challenger to the SWIFT banking network for international transfers but struggling to realize its ambitions.
Interestingly, Forbesâ analysis raises doubts about the widening gap between market valuation and practical approach within the crypto space. It also examines emerging contenders labeled as âEthereum killers,â such as Tezos and Cardano, which face challenges in achieving widespread adoption despite their technological advancements and substantial valuations.
However, operating without regulatory oversight or strong governance modules puts these cryptocurrencies at risk, with Ethereum Classicâs trading activity after security breaches serving as a cautionary example.Â
Forbes flagged these cryptocurrencies as âzombiesâ due to a gap between their high valuations and low real-world use. Though it may seem harsh for growing projects like XRP and Cardano, they might struggle with utility but others may have strong community support.Â
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