Sat, April 27, 2024 at 07:10

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some interesting news from Forbes about the world of cryptocurrencies.

  • They've recently conducted a comprehensive study and identified a group of cryptocurrencies they term as 'zombie blockchains'.

  • 
• Annie

  • Zombie blockchains?

  • That sounds spooky!🎃 What does it mean exactly?

  
• 

  Kang-hoon

  • It's quite an apt term.

  • These are cryptocurrencies that continue to operate and trade without showing any tangible evidence of fulfilling practical purposes.

  • They exist, but without displaying the vital signs of life in terms of utility or significant user bases.

• Annie

  • Oh, I see.😮 So, which cryptocurrencies are we talking about here?

  
• ADward

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• 

  Kang-hoon

  • Among the names featured in this list are Ripple (XRP), Cardano (ADA), Litecoin (LTC), Bitcoin Cash (BCH), and Ethereum Classic (ETC).

• Annie

  • Wow, those are some big names!

  • But why is Ripple's XRP on the list?

  • I thought it was a formidable contender to the SWIFT banking network.

  
• 

  Kang-hoon

  • Indeed, XRP was initially conceived as a strong competitor to SWIFT, promising rapid and cost-effective international bank transfers.

  • However, it has since struggled to fulfill its lofty aspirations.

  • Despite its failure to disrupt SWIFT, XRP persists as one of the most valuable cryptocurrencies in the market with a staggering market value of $36 billion.

• Annie

  • That's a lot of money!😲 But if it's not fulfilling its purpose, why is it still valuable?

  
• 

  Kang-hoon

  • Analysts at Forbes assert that speculative trading rather than genuine utility largely sustains XRP's market dominance.

  • This raises pertinent questions about the fundamental viability and purpose of XRP.

• Annie

  • Hmm, that's quite concerning.🤔 And what about the others like Litecoin, Bitcoin Cash, and Ethereum Classic?

  
• 

  Kang-hoon

  • Similar to XRP, these cryptocurrencies also find themselves under Forbes' discerning analysis due to their lack of practical application despite their high market valuation.

• Annie

  • I see.

  • So, is this news good or bad?

  • What impact will it have on the market?

  
• 

  Kang-hoon

  • In my view, this news can be seen as a warning sign.

  • 

  • It highlights the growing chasm between market valuation and practical application within the cryptocurrency ecosystem.

  • Investors should be wary of these 'zombie blockchains' and consider the risks associated with investing in cryptocurrencies devoid of robust governance structures.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.