Many ‘crypto cities’ have emerged over the years, aiming to harness blockchain technology. However, the reality is that most initiatives have encountered significant challenges, and industry experts believe they understand the reasons behind these failures.
Recent Efforts and Failures
A notable project was Akon City, initiated by the musician Akon in 2018. Planned as a $6 billion smart city with a cryptocurrency-driven economy, it was officially abandoned in July of this year. Another effort, Satoshi Island, aimed to create a home for crypto professionals on an entire island near Vanuatu, but its last update also came in July, with essential services still under development.
Satoshi Island
Source: Satoshi Island
Misguided Objectives
Ari Redbord from TRM Labs points out that many of these projects focus on unrealistic aspirations, trying to construct entirely self-sufficient cities that are detached from existing society. Instead, he suggests enhancing current economies by integrating modern technologies like AI to improve processes and accountability.
“Every city will become a crypto city, not through ideology but through technology — faster, safer, and more transparent rails for moving value.”
The Future of Crypto Cities
Kadan Stadelmann from Komodo argues that creating a real crypto city is feasible in ungoverned areas such as international waters but would demand profound dedication and a shared vision.
“It could be that crypto’s vast resources are best used to improve the world we’ve already got.”
Vladislav Ginzburg believes that leveraging modern cities like Dubai could yield better outcomes than attempting to start anew. Maja Vujinovic emphasizes that without governmental support, establishing a crypto city could lead to significant legal obstacles.
“The winning ingredients are: a government partner with delegated regulation and visas, multibillion-dollar staged capital, clear crypto rules, and anchor employers in AI, crypto and biotech.”
Sean Ren argues that rather than creating isolated tech havens, exploring regulatory frameworks within established cities for testing new technologies could lead to meaningful advancements.
“A city designed to responsibly test AI training rules, data provenance standards, or token-based economies could add real value.”
