Among the cryptocurrencies and projects Forbes mentions are Ripple, XRP, Ethereum Classic (ETC), Tezos (XTZ), Algorand (ALGO), and Cardano (ADA).
In a controversial report, Forbes revealed a list of 20 “billion-dollar cryptozombies,” Layer 1 (L1) tokens, which the news outlet defines as crypto assets with substantial valuations but “limited utility beyond speculative trading.”
Ripple Labs, the company behind XRP, was highlighted as a prime example of a “cryptozombie.” Despite XRP’s active daily trading volume, Forbes suggests that its use does not go beyond market speculation.
Ethereum Classic (ETC) was also included on the list due to its high market value and relatively low network fees. ETC was created in 2016 as a result of a fork of the DAO incident and is considered a continuation of the original Ethereum blockchain.
Cardano’s inclusion in the list was seen as a surprise. The Forbes article suggests that the project capitalizes on the popularity of its founder, Charles Hoskinson, and raises questions about its educational claims.
However, Cardano supporters argue that its ecosystem is active and thriving, providing value and utility beyond mere speculation. They cite the network’s inputs and ongoing development activities as evidence of its vitality and relevance.
XRP and Ethereum Classic in the Spotlight
Ripple Labs, the company behind XRP, was highlighted as a prominent cryptozombie. However, Ripple Labs and XRP are not alone in this regard.
Forbes reveals that 50 blockchains, excluding Bitcoin (BTC) and Ethereum (ETH), are currently trading at values exceeding $1 billion, and at least 20 of them are classified as “functional zombies.” Together, these 20 blockchains have a market value of $116 billion, despite having “limited user bases.”
According to Forbes, an example of a “functional zombie” is Ethereum Classic, which maintains the distinction of being the original Ethereum chain. While ETC has a market value of $4.6 billion, its commission generation in 2023 was less than $41,000, raising questions about the viability of the blockchain for the news organization.
Another crypto project in the Forbes report is Tezos, which raised $230 million through an initial coin offering (ICO) in 2017. Tezos’ XTZ token currently has a market capitalization of $1.2 billion. However, blockchain fee earnings were meager, at $5,640 in February 2024 and a total of $177,653 for all of 2023.
Algorand, once hailed as an “Ethereum killer” due to its ability to process 7,500 transactions per second, faces similar challenges. Despite a market capitalization of $2 billion and a treasury holding of $500 million, Algorand earned $63,000 in blockchain transaction fees throughout 2023. For Forbes, this casts doubt on its adoption and real usefulness.
‘Zombie’ Crypto Blockchains
Forbes classifies zombie blockchains into two groups: spin-offs and direct competitors of established blockchains like Bitcoin and Ethereum. Derivative zombies include Bitcoin Cash (BCH), Litecoin (LTC), Monero (XMR), Bitcoin SV (BSV), and Ethereum Classic.
These blockchains, collectively valued at $23 billion, supposedly arose from “disagreements” between programmers regarding the governance and direction of the original chains.
Overall, the report highlights a growing disparity between the valuations of certain projects in the cryptocurrency industry and their actual utility and use. Consequently, Forbes refers to these projects as “zombies.”
While Forbes’ statements may seem harsh to those who identify with the aforementioned communities, it is important to note that the researcher’s views and opinions may not always align with reality and are only part of a personal perspective. In fact, some of the projects mentioned have usability issues, while others represent vibrant ecosystems with strong cases.
By Audy Castaneda
