Forbes Calls 20 Altcoins "Zombie": Community Stands Up

A Forbes article by Steven Ehrlich, Maria Gracia Santillana Linares, and Nina Bambysheva targeted 20 blockchains, including Ripple's XRP Ledger (XRPL), Cardano (ADA), and Bitcoin Cash (BCH). The article labeled these blockchains behind many famous altcoin projects, "zombie chains". This harsh criticism has sparked outrage from industry leaders and enthusiasts alike. Cardano founder Charles Hoskinson, XRP lawyer Bill Morgan, and Anodos Finance co-founder Panos Mekras were among the first to advocate for their own projects and the broader Web3 space.

Ripple's XRPL under fire

XRPL has found itself at the center of the controversy. Forbes downplayed the importance of the network, claiming that it had failed to disrupt the global money transfer system currently dominated by SWIFT. However, the article neglected to mention the growing adoption of Ripple's On-Demand Liquidity (ODL, now RippleNet) product for cross-border payments. Companies such as Bitso, a leading crypto exchange, have successfully processed billions of dollars in remittances by leveraging XRP and stablecoins.

yes... excellent piece of nonsense and misinformation by @Steven_Ehrlich who is clearly misinformed and didn't bother to do the basic research for the piece he wrote. Unfortunately, these are the idiots who write on mainstream media and "lecture" the public and the masses.

— Panos 🔼 {X} (@panosmek) March 27, 2024

Moreover, critics have highlighted the XRPL's low transaction fees (only $0.0002 per transaction compared to SWIFT's fees, which range from $10 to $100). This low-fee structure, designed to block spam transactions, was falsely interpreted by Forbes as a sign of inactivity. Bill Morgan, the lawyer representing Ripple, emphasized the utility of the network despite the ongoing regulatory challenges in the United States.

The founder of the altcoin Cardano also defended the network

Charles Hoskinson, the charismatic co-founder of Cardano, took a lighter approach on Twitter. As a show of solidarity against the accusations, he tagged Ripple, Tezos, and Bitcoin Cash. He joked, "I think it's because we have brains." This playful remark underlined Cardano's confidence in its potential in the crypto ecosystem.

Hey guys @tezos @Algorand @bitcoincashorg @Ripple_XRP1 @StellarOrg @BobSummerwill we are all Crypto Zombies according to Forbes.

I guess it's because we got all the 🧠 ! pic.twitter.com/nwKbf7R4Pb

— Charles Hoskinson (@IOHK_Charles) March 27, 2024

"Zombie chain" review

The main problem lies in defining "utility" in the ever-evolving blockchain landscape. While Bitcoin and Ethereum continue to be the dominant force, other blockchains are exploring a variety of applications beyond facilitating transactions. Cardano, for example, focuses on building a secure and scalable platform for developing decentralized applications (dApps).

The Forbes article also raised concerns about the long-term viability of these "zombie chains," citing technical constraints and governance issues. However, in the dynamic world of crypto, these challenges are constantly being addressed through ongoing development and innovation. The articles remind investors that they should conduct thorough research before making investment decisions in the volatile crypto market. But it's equally important to acknowledge the ongoing advancements and potential in the Web3 space.

Follow us on Twitter*, Facebook and Instagram to stay up to date with breaking news. Join our Telegram and Youtube channel.*