Forbes, a prestigious global magazine, recently released a scathing report on XRP and Ripple Labs, labeling them as ineffective and stagnant projects. This critique comes amidst a resurgence in the cryptocurrency market, led by Bitcoin. Despite this, Forbes chose to focus on XRP and Ripple in their analysis.
The Rise and Fall of Ripple Labs
Forbes delved into the history of Ripple Labs, emphasizing their ambitious goal of revolutionizing global finance by creating a network for fast and affordable money transfers for banks. This vision attracted interest from various financial institutions eager to test Ripple’s innovative technology. However, Forbes criticized Ripple’s leadership for creating 100 billion XRP tokens and selling $1.4 billion worth to the public to fund their ambitious plans.
The report also highlighted the widespread belief that Ripple would outperform SWIFT, a system that processes $5 trillion in interbank transfers daily. Nevertheless, Forbes pointed out that more than a decade later, this expectation remains unfulfilled. Despite existing for over a decade, Ripple is still only conducting pilot programs with central banks in countries like Georgia and the Republic of Palau. Consequently, Forbes labeled Ripple Labs as a “crypto zombie” for failing to achieve its primary goal.
XRP’s Lack of Utility
Despite its shortcomings, XRP maintains a market capitalization of over $36 billion, making it the sixth most valuable cryptocurrency. Forbes noted that XRP is heavily traded, with daily transactions exceeding $2 billion. However, the report suggested that this trading activity is driven by speculation rather than utility.
Forbes further argued that SWIFT continues to dominate the international payment sector, remaining unchallenged by Ripple. The magazine highlighted the rise of more efficient blockchain-based payment methods, such as stablecoins like USDT, which pose a threat to Ripple’s relevance.
Beyond Ripple: A World of Crypto Zombies
Forbes did not reserve its criticism for Ripple alone, extending it to numerous other blockchain projects. The magazine identified at least 50 blockchain platforms valued at over $1 billion, with around 20 of them classified as “functional zombies.” This list included projects like Cardano (ADA), Bitcoin Cash (BCH), Litecoin (LTC), and Stellar (XLM).
Crypto Community Response
Despite Forbes’ negative assessment, the crypto community remained largely unfazed by the criticism. Many viewed the harsh critique as a bullish sign, indicating potential for growth. Some community members even pointed out inconsistencies in Forbes’ analysis, citing previous articles where the magazine recommended tokens like XRP, Cardano, and even the meme coin Shiba Inu.
In conclusion, while Forbes’ report offers valuable insights into the state of the cryptocurrency market, readers are advised to conduct thorough research before making investment decisions. The opinions expressed in the article are the author’s own and do not necessarily reflect those of The Crypto Basic.