Ripple and XRP Among Forbes' 20 Crypto 'Zombies' 🧟‍♂️

Exploring the World of Crypto Zombies: Valuations vs. Utility

As a cryptocurrency enthusiast, you are likely familiar with the concept of crypto zombies – assets with high valuations but limited utility beyond speculative trading. Forbes recently unveiled a list of 20 such “crypto billion-dollar zombies,” shedding light on prominent projects like Ripple, Ethereum Classic, and Tezos. Let’s delve into the world of these crypto zombies and explore how their market value may not always align with their actual utility.

Ripple and Ethereum Classic Under the Spotlight

One of the key players in this realm is Ripple Labs, the entity behind XRP. Despite XRP’s massive daily trading volume of approximately $2 billion, Forbes suggests that the token’s primary purpose remains predominantly speculative, lacking significant utility. Ripple Labs and XRP are not alone, as Forbes identifies several other projects with substantial valuations but limited real-world applications.

Ripple Labs highlighted as a major crypto zombie
Despite active daily trading volume, XRP’s utility questioned
Presence of several other projects with similar characteristics

The Concept of Functional Zombies

Forbes introduces the notion of “functional zombies,” referring to blockchains valued at over $1 billion but with limited user bases and utility. Ethereum Classic serves as an example, boasting a market value of $4.6 billion but generating meager fee earnings in 2023. The report raises concerns about the sustainability and viability of such blockchain projects in the long run.

Functional zombies defined as high-value blockchains with limited utility
Ethereum Classic cited as an example of a functional zombie
Questions raised about the long-term viability of such projects

Tezos and Algorand: Struggles of Promising Projects

Tezos, which raised $230 million in an ICO in 2017, currently holds a market capitalization of $1.2 billion. Despite this, the blockchain’s fee earnings are minimal, casting doubt on its actual utility and adoption. Similarly, Algorand, with its high transaction processing capability, faces challenges as its blockchain transaction fees remain relatively low compared to its market capitalization.

Tezos’ ICO success contrasts with its low fee earnings
Algorand’s high market cap does not align with its modest fee earnings
Challenges faced by promising projects in the crypto space

Categorizing Crypto Zombie Blockchains

Forbes categorizes crypto zombie blockchains into two groups: spin-offs and direct competitors to established chains like Bitcoin and Ethereum. Spin-off zombies, including Bitcoin Cash, Litecoin, Monero, and Bitcoin SV, emerged from disagreements among programmers, resulting in hard forks that created new networks with similar transaction histories.