Why Forbes Labeled Ripple, Cardano, Fantom as Zombie Tokens

Cryptocurrencies such as Ripple (XRP), Cardano (ADA), and Fantom (FTM) were dubbed “zombie tokens” in a recent Forbes expose. These command multi-billion dollar prices, despite little practical utility.

These blockchains, called “why nots,” trade more on speculative rather than practical demand, exhibiting the characteristics of speculative bubbles rather than technology-driven markets.

Ripple (XRP), Cardano (ADA), Fantom (FTM) Are Worthless: Forbes

Ripple's ambitions to transform bank transfers, competing directly with SWIFT, largely failed to achieve its goals. The network continued to generate $583,000 in transaction fees last year, a small figure compared to its $36 billion market cap.

In a new report, Forbes attributes this difference to the speculative nature of financial services rather than the actual nature of them.

Cardano and Phantom tell the same tale. With a massive market cap of $23 billion and huge amounts of cash locked up in the treasury, their real-world applications have lagged.

Despite founder Charles Hoskinson's comprehensive development plans and public engagements, Cardano has moved beyond the pilot stages in many aspects. Meanwhile, the Phantom, while less publicized, rides on similarly high expectations with less marketing.

“It's like early stage venture capital funds or companies that raise a lot of money and don't know how to deploy it adequately. There is no way to return the treasury to its investors,” said Matt Hogan, CIO of Bitwise Asset Management.

Forbes classifies more than 20 cryptocurrencies as zombies due to the lack of real user bases or practical applications outside of trading platforms. This situation reflects a broader issue in the cryptocurrency market. Huge amounts of capital are tied up in projects with questionable futures and lifespans.

Read more: 11 Cryptos to Add to Your Portfolio Ahead of the Altcoin Season

This situation prompts investors and users to tread carefully, as the longevity and success of these platforms depend on market sentiment rather than fundamental value.