Blockchain city blues: why crypto utopias often fall flat

For a long time, people in the blockchain community have wanted to create their own ideal society where blockchain is the foundation and code is law. But these projects often fail. This is because of problems with the rules, people expecting too much, and other challenges.

Some of these projects have been more practical, using blockchain for things like land registration. Others have aimed to build entire cities powered entirely by blockchain and crypto.

Let’s take a look at some examples, both successful and not so successful:

MS Satoshi Bitcoin cruise: a maritime mishap

In October 2020, a group of Bitcoin fans bought a cruise ship. They wanted to turn it into a city made up of floating buildings. This city would be located off the coast of Panama. The idea was to create a community for people who work remotely and are interested in cryptocurrency. It combined the crypto world with the “seasteading” movement, which is the idea of building communities on the open ocean.

The ship had all the amenities you’d expect, like restaurants, pools, and a gym. Residents would be able to mine crypto and do business without government interference, using Bitcoin for everything on board.

Unfortunately, the project ran into problems. They couldn’t attract enough investors to cover costs, fuel alone was costing them a fortune, and the COVID-19 pandemic created logistical nightmares. Plus, they didn’t realize how strict maritime regulations are. By December 2020, they sold the ship.

Trump’s “Gaza riviera”: Tokenizing displacement?

In August 2024, reports emerged of a plan by the Trump administration to develop the Gaza Strip under American control. The plan included high-tech ideas to boost the economy, like a deep-sea port, a “Trump touristic riviera,” and electric vehicle manufacturing zones.

It also suggested a “voluntary” programme where Palestinians could give their land to a trust in exchange for a small amount of money. The token could be used to move to or live in one of eight “smart cities” planned in Gaza.

The plan hasn’t gone ahead, and UN experts have criticised it, saying it’s a cover for military and political plans that break international law.

Liberland: A Libertarian micronation on the Danube

In 2015, a Czech politician claimed an uninhabited piece of land on the Danube River between Croatia and Serbia. He believed he could form a country there and founded the Free Republic of Liberland.

The project attracted crypto enthusiasts by issuing its own cryptocurrency and promising a minimalist approach to government. The token became available on a crypto trading platform in September 2025.

While neither Croatia nor Serbia claims the land, they also don’t support the crypto libertarians. The founders have had multiple run-ins with the police while trying to cross the Croatian border.

CityDAO, Wyoming: crypto goes West

In 2021, Wyoming passed laws that mean DAOs are now legal. Soon after, a group of people formed CityDAO. They wanted to show that DAOs could buy and manage land, make decisions more quickly, and solve disagreements.

The project raised over $8 million to buy 40 acres of land in Wyoming. The idea is to build a city of the future on the Ethereum blockchain.

But they did have some problems. Many members wanted the land to be used for conservation, and a mistake meant that money was lost. The rules about how the land could be used also meant that they couldn’t build certain things on it.

CityDAO did manage to form a legal entity, but it didn’t quite achieve its ideal goals.

Akon City: a bad note in Senegal

Akon City, the brainchild of singer Akon, was one of the most talked-about crypto city projects. Akon planned to launch a cryptocurrency called Akoin to support his futuristic city in Senegal.

He secured land from the Senegalese government for the $6 billion smart city project, where Akoin would be used for all transactions. The city was supposed to have a hospital, office parks, a university, and upscale residences.

However, the project stalled due to the COVID-19 pandemic. By 2024, only the welcome center was partially complete. Akoin’s price collapsed, and the Senegalese government demanded that Akon start construction or return the land. As of July 2025, the project was abandoned.

Blockchains LLC’s crypto city: drying up in Nevada

In 2021, Blockchains LLC aimed to build a blockchain city in the Nevada desert. The company bought over 67,000 acres of land for $170 million, planning to turn it into homes and business parks.

The CEO envisioned a city where residents would use cryptocurrency for everything, and all information would be recorded on the blockchain.

However, the project faced obstacles. The proposed water source would have required a long pipeline, and the company’s plan to create “innovation zones” that would allow it to operate like a county government was met with resistance. The proposal failed to gain traction, and the project stalled.

Success story: Liberstad, Norway’s anarchist commune

In 2015, John Holmesland and Sondre Bjellås set up Liberstad, a community based on anarchist ideas. They bought land with donations and set up the community in 2017.

Liberstad owns land, has residents who live there permanently, and has developed its own blockchain technology for its economy. It may be small, but compared to the others, it’s a success story.