Forbes Slams 'Zombie' Altcoins: Cardano, Ripple, Ethereum Classic Under Scrutiny

Forbes analysts have labeled ADA, ETC, and XRP as "zombie" tokens due to their perceived overvaluation, lack of utility, and dependence on speculative trading. Despite XRP's active trading volume, analysts argue that it lacks practical use beyond speculation, while ETC's usage remains limited to purists. Cardano's network activity and DeFi metrics have declined, raising concerns about its revenue potential.

Overvalued Altcoins: Forbes Unveils 'Zombie' Tokens, Cardano, Ripple, Ethereum Classic Under Fire

In a scathing assessment, Forbes analysts have taken aim at several altcoins, labeling them "zombie" tokens due to their perceived overvaluation and lack of fundamental value. Among the coins facing scrutiny are Cardano (ADA), Ripple (XRP), and Ethereum Classic (ETC).

Cardano: Founder's Reputation Overshadows Lackluster Network Activity

Forbes analysts pinpoint Cardano as an example of a token that has enjoyed speculative interest based largely on the reputation of its founder, Charles Hoskinson. However, the network's metrics paint a bleak picture, with daily active addresses and transaction volumes both declining significantly.

Compounding the concerns, Cardano's Total Value Locked (TVL) in the DeFi sector has plummeted, potentially harming the network's future revenue prospects. Moreover, ADA's price has taken a hit, falling over 3% in the past 24 hours.

Ripple: Speculation Trumps Utility Amidst Evolving Payment Landscape

Ripple Labs has drawn the ire of Forbes analysts for its "zombie" status. Despite XRP's active trading volume, analysts argue that the tokens serve no practical purpose beyond speculation. With SWIFT still a formidable player and more efficient blockchain-based payment methods emerging, XRP's utility appears questionable.

At the time of writing, XRP has dipped by 1.24% in the last 24 hours, reflecting the broader market sentiment.

Ethereum Classic: Purists' Token Faces Decline

Ethereum Classic, often touted as an alternative to Ethereum, has not escaped the criticism. Forbes analysts highlight its declining use outside a niche group of purists. The coin's price has nosedived by 17% over the past month, mirroring the lack of broader adoption.

Underlying Concerns: Lack of Technological Progress and Sustainable Revenue Models

The Forbes analysts' critique extends beyond these specific tokens, raising broader concerns about the altcoin market as a whole. Many projects are accused of relying heavily on speculative trading and initial funding rather than delivering on their promised technological advancements or providing practical use cases.

As a result, investors are urged to approach these overvalued tokens with caution and to seek out projects with strong fundamentals and a clear path to sustainable revenue generation.

Conclusion

Amidst the ongoing market turmoil, Forbes' identification of these "zombie" tokens serves as a timely reminder of the importance of thorough research and due diligence. Investors should be wary of tokens that appear overvalued based on hype or speculation and instead prioritize coins with proven utility and a demonstrated ability to deliver value to users.