A recent Forbes report has shed light on cryptocurrencies like Ripple (XRP), Cardano (ADA), and Fantom (FTM), labeling them as “zombie tokens.” These digital assets hold significant market valuations despite limited practical use, relying heavily on speculation rather than actual demand. This trend reflects characteristics of a speculative bubble rather than a technology-driven market.
Ripple, for instance, aims to revolutionize banking transfers and compete with SWIFT but has struggled to meet its goals. Despite processing a minimal amount in transaction fees compared to its market value, Ripple continues to operate in a speculative manner rather than for actual financial utility.
Similarly, Cardano and Fantom face similar challenges, with high market valuations and substantial funds locked in treasury but lacking significant real-world applications. Despite efforts by Cardano’s founder Charles Hoskinson, the project has yet to move beyond pilot stages, while Fantom experiences minimal transactional throughput despite high speculation.
According to Matt Hougan, CIO of Bitwise Asset Management, these cryptocurrencies resemble early-stage venture capital funds or companies that raise excessive funds without a clear deployment strategy, leading to challenges in returning value to investors.
Forbes has categorized over 20 cryptocurrencies as zombies due to their lack of substantial user bases or functional applications beyond trading platforms. This highlights a broader issue within the cryptocurrency market, where significant capital is tied up in projects with uncertain futures and utility.
Investors and users are advised to approach these platforms with caution, as their longevity and success heavily depend on market sentiment rather than intrinsic value. It is crucial to conduct independent verification and seek professional advice before making decisions based on such content.