Exposé Reveals the Truth About Zombie Tokens in the Cryptocurrency Market 🧟♂️
A recent report by Forbes has shed light on cryptocurrencies like Ripple (XRP), Cardano (ADA), and Fantom (FTM) being labeled as “zombie tokens.” These tokens have garnered multi-billion dollar valuations despite having minimal practical use. Instead of being driven by functional demand, these blockchains heavily rely on speculation, resembling characteristics of a speculative bubble rather than technological innovation.
– Ripple (XRP) Struggles to Deliver on Banking Revolution:
– Despite aiming to revolutionize banking transfers and directly compete with SWIFT, Ripple has fallen short of its objectives.
– The network only generated $583,000 in transaction fees last year, a fraction of its $36 billion market value.
– Cardano and Fantom Follow a Similar Pattern:
– Cardano boasts a market valuation of $23 billion but has yet to fully implement its ambitious plans beyond pilot stages.
– Fantom, although less publicized, faces similar challenges with minimal transactional throughput despite high speculation.
“It’s like early-stage venture capital funds or companies that raise too much money and don’t know how to adequately deploy it. There’s no way to return the treasury to the investors,” said Matt Hougan, CIO of Bitwise Asset Management.
Forbes has identified over 20 cryptocurrencies as zombies due to their lack of substantial user bases or real-world applications outside trading platforms. This trend exposes a broader concern in the cryptocurrency market, where significant capital is tied up in projects with uncertain futures and utility.
Investors and users are advised to exercise caution as the success and longevity of these platforms heavily rely on market sentiment rather than intrinsic value.
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