Forbes magazine recently released a scathing report on XRP and Ripple Labs, labeling them as failed projects and zombies. The analysis focused on billion-dollar crypto projects in light of Bitcoin’s resurgence in the market. Despite this, XRP and Ripple were singled out for scrutiny.
The Rise and Fall of Ripple
Forbes delved into Ripple’s past, highlighting its goal of revolutionizing global finance by creating a network for quick and affordable money transfers for banks. This vision attracted interest from various financial institutions eager to test Ripple’s innovative platform.
The report revealed that Ripple’s leadership created 100 billion XRP tokens and sold $1.4 billion to the public to fund their ambitious plans. It was also noted that there was an expectation for Ripple to surpass SWIFT, a major player in interbank transfers processing $5 trillion daily. However, more than a decade later, this goal remains unfulfilled.
Forbes criticized Ripple for only conducting pilot programs with central banks in countries like Georgia and the Republic of Palau after all these years. The publication went as far as labeling Ripple Labs as a “crypto zombie” due to its failure to achieve its primary objective.
XRP’s Questionable Value
Despite its shortcomings, XRP still holds a market cap of over $36 billion, making it the sixth most valuable cryptocurrency. The report acknowledged that XRP is heavily traded, with daily transactions reaching around $2 billion. However, Forbes suggested that this activity is driven by speculation rather than genuine utility.
Additionally, Forbes highlighted the strength of SWIFT, which remains unchallenged by Ripple. The emergence of more efficient blockchain technologies for international payments, such as stablecoins like USDT, has posed a threat to Ripple’s relevance in the market.
Beyond Ripple and XRP
Forbes did not reserve its criticism solely for Ripple and XRP, extending it to other blockchain projects as well. The publication identified at least 50 platforms valued at over $1 billion, with around 20 of them labeled as “functional zombies.” Projects like Cardano (ADA), Bitcoin Cash (BCH), Litecoin (LTC), and Stellar (XLM) were among those listed.
Community Response
Despite Forbes’ negative assessment, the crypto community remained unfazed by the critique, viewing it as a bullish signal. Some even interpreted the harsh criticism positively. Others pointed out inconsistencies in Forbes’ analysis, noting that the magazine had previously recommended tokens like XRP, Cardano, and even meme coins like Shiba Inu.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed are the author’s own and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.