A group of cryptocurrency investors imagined living in a cryptostate in which everything was based on blockchain technology and, of course, 100% tax free. The project it was so serious that they even found a private island in the middle of the Pacific and named the place Satoshi Island in honor of the bitcoin creator.
In it, crypto investors could move in and acquire their citizenship in exchange for a modest 120,000 euros. Eight years later, the Satoshi Islandnot only has it not become the tropical crypto paradise promised of bitcoin and NFT, but is at risk of disappearing under the waters of the Pacific.
The origin of the initiative. As and how I collected FortuneIn 2017 and with the support of more than 50,000 investors, the “Satoshi Island” project was launched with the development of a new crypto nation on the private island in the South Pacific previously known as Lataro Islandin the Vanuatu archipelago, east of Australia and halfway between the Solomon Islands and New Caledonia.
The small 32 km2 island was leased to the local government of Vanuatu for 75 years by British real estate entrepreneur Anthony Welch who, according to France 24had been living there for more than a decade. In 2021, the transformation to “Satoshi Island”, named in honor of Satoshi Nakamoto, was presented. with the promise to become a crypto city-state, without taxes and based exclusively on blockchain and NFT. The vision included digital citizenship, “crypto-friendly” modular housing, and an economy untethered from traditional fiat.
Real estate promises and realities. The plan was articulated under several axes: issuing citizenship and ownership NFTs, building modular homes on 21,000 available plots, adopting renewable energy, decentralized governance and attracting a global community of crypto investors. It sounds like a complicated formula to attract new neighbors to the island and, in the process, “rent” them part of the 90% of the island that was uninhabited.
“We are trying to build a community. We are not looking to develop for profit,” assured Welch to Guardian in a satellite interview with the island, given that the island does not have electricity or internet. Bad omen for an economy based on digital transactions.
The wall of territorial sovereignty. According what was published through the specialized portal Decryptin 2022 the Vanuatu government, with then Prime Minister Bob Loughman, supported the initiative after ensuring that they had received thousands of applications, which gave more visibility to the project.
Obviously, for all the NFTs of Satoshi Island citizenship, the reality is that investors who wanted to live on the island had to obtain Vanuatu citizenship, which “Golden Visa” mode It was awarded in exchange for a generous donation of 120,000 euros. According to data of the International Monetary Fund, around 40% of its income comes from the “Golden Visa”, so the Satoshi Island project was an excellent attraction to attract new residents and obtain large income.
The blow of reality. Shortly after, the first alarm signals began to emerge: absence of infrastructure, significant delays in the implementation of the habitability project and the legal complexity of transforming NFTs into property titles. recognized by the state (the real one, that of Vanuatu).
Little by little the project has been deflating until, in July 2025, a publication in the project X profile It marked the end of the cryptotropical dream.
Furthermore, the project’s demise is not just figurative, as the Vanuatu archipelago is highly vulnerable to sea level rise, coastal erosion and extreme weather events resulting from climate change, a forecast that already is coming true in its neighboring archipelago of Tuvalu, which has already begun its migration for climatic reasons.
Image | Vladi
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