Forbes’ ‘Good for Nothing’ List Targets “Overvalued” Blockchains

This list features blockchains such as Ripple, Cardano, Bitcoin Cash, Litecoin, Internet Computer, Stellar, among many others.

This controversial list highlights the issues of inflated valuations and overhyped blockchain launches. It critically addresses the persistent problems within the industry.

The Core Critique, Market Saturation, and Its Victims

Although innovative, the blockchain industry has often been plagued by absurd valuations and the emergence of overvalued chains. These do not substantively advance the technology or its practical applications. This practice not only misleads investors but also distorts the market landscape, making it challenging to distinguish viable projects from speculative bubbles. Forbes’ list brings attention to these fundamental concerns, marking a significant moment of alignment between traditional media perspectives and seasoned industry observers.

NEWS: Forbes posts “Good-for-nothing blockchains” pic.twitter.com/qjmo55liHz

— Pluid (@tryPluid) April 27, 2024

Additionally, the proliferation of vaporware and meme coins floods the market, diluting the quality of genuine blockchain innovations. This saturation leads to debates over whether sheer speculation justifies considering blockchain technology and meme coins as a legitimate asset class.

Unfortunately, it is often the small, uninformed retail investor who suffers most, left holding assets that may lose considerable value rapidly. The highlighting of these chains by Forbes serves as a cautionary tale to these investors, underlining the risks involved in chasing speculative gains in the blockchain space.

Forbes’ Criteria for Evaluation

Forbes didn’t arbitrarily select the blockchains for its list. The magazine used clear, objective criteria to assess each blockchain’s utility and viability:

• Market Cap: A measure of the total market value of the blockchain’s circulating supply.
• Monthly Active Developers: An indicator of the blockchain’s developmental activity and ecosystem health.
• Treasury: An evaluation of the financial reserves held by foundations that support the blockchain’s maintenance and development.
• Total Value on the Chain: A gauge of the blockchain’s overall usage and utility.
• Network Fees: A reflection of the economic activity and transactional throughput on the blockchain.

“Tezos raised $230 million in a 2017 initial coin offering (ICO), and the current market capitalization for its XTZ token is $1.2 billion.”

Tezos “$5,640 was earned in February 2024 and $177,653 for all of 2023.

“Tezos has $700 million in its treasury” pic.twitter.com/QxKyuwK6mL

— Ignas | DeFi Research (@DefiIgnas) April 25, 2024

These metrics provide a framework for investors and developers to critically assess the fundamental strengths or weaknesses of various blockchains, moving beyond the hype to focus on tangible value and utility.

Disclaimer

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