When a cryptocurrency exchange notes its very first altcoin, it sets itself up for a limitless cycle of introducing memecoins, alerts a Bitcoin-only organization executive.
” The minute an exchange includes one non-Bitcoin token, they are registering to be on the permanently hamster wheel of memecoins,” River Financial CEO Alex Leishman stated in a March 29 X post. “It makes no sense to list ETH if you do not note the tokens provided on ETH, and the very same opts for Solana,” Leishman stated.
River has no interest in developing a “effective crypto gambling establishment”
Leishman stated while there are numerous “effective crypto gambling establishments,” he has no interest in developing one. River Financial is a Bitcoin-only banks concentrating on trading Bitcoin (BTC). Numerous business have actually chosen the Bitcoin-only method, consisting of Swan Bitcoin, Bull Bitcoin, and decentralized exchange Bisq.
Leishman declared that multi-asset trading platforms focus on short-term speculation over wealth build-up:
” The gambling establishment service design is constructed around optimum extraction from clients, and the Bitcoin-only design is concentrated on assisting individuals develop long-lasting wealth.”
Critics have actually voiced this point in the past, even throughout the memecoin uptrend in early 2024. In April 2024, A16z chief innovation officer Eddy Lazzarin stated that memecoins obstruct the long-lasting vision of crypto that has actually kept numerous of the initial contractors in the area.
” At finest, it appears like a dangerous gambling establishment,” Lazzarin stated.
The memecoin market cap is down 27.94% over the previous 12 months. Source: CoinMarketCap
The total memecoin market cap has actually taken a substantial recession given that the start of 2025. Given that Jan. 1, the memecoin market cap has actually dropped nearly 49% to $48.49 billion at the time of publication, according to CoinMarketCap information.
Nevertheless, while altcoins have actually traditionally been more unstable than Bitcoin, providing them along with Bitcoin has actually been a rewarding relocation for crypto exchanges and brokers.
Related: Awaiting altcoin season? Information recommends it’s currently here
On Feb. 12, Robinhood, which provides a number of cryptocurrencies to its clients, reported a 700% year-over-year rise in Q4 2024 cryptocurrency earnings.
Some traders appear to translate a memecoin listing on an exchange as recognition of its trustworthiness. Amongst the 15 memecoins noted by crypto exchange Binance in 2024, 12 saw substantial boosts in worth after going live on the exchange, pseudonymous onchain expert Ai_9684xtpa stated in November.
CoinGecko creator Bobby Ong just recently hypothesized that the memecoin market may be headed towards an “severe case of power law,” where 99.99% stop working and a couple of increase to the leading and withstand.
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