A cryptocurrency exchange that introduces its first altcoin may find itself trapped in a relentless cycle of launching memecoins, cautions an executive from a Bitcoin-focused institution.
“Once an exchange incorporates a single non-Bitcoin token, they effectively commit to an endless loop of memecoins,” stated River Financial CEO Alex Leishman in a post on March 29. “If you list ETH, it’s only logical to then list the tokens created on ETH, and the same principle applies to Solana,” he remarked.
River is not interested in creating a “successful crypto casino”
Leishman noted that although there are numerous “successful crypto casinos” in existence, he is not interested in developing one. River Financial is dedicated solely to Bitcoin, specializing in its buying and selling. Various other companies have adopted a similar Bitcoin-only philosophy, including Swan Bitcoin, Bull Bitcoin, and decentralized exchange Bisq.
According to Leishman, platforms that offer multiple assets often prioritize immediate speculation rather than long-term wealth creation:
“The casino business model relies on extracting maximum profit from customers, while the Bitcoin-only approach aims to assist individuals in building lasting wealth.”
This perspective has surfaced in previous critiques, especially during the memecoin surge in early 2024. In April 2024, A16z’s chief technology officer Eddy Lazzarin expressed that memecoins detract from the broader vision of crypto, which has kept many original innovators engaged in the field.
“At best, it resembles a high-stakes casino,” Lazzarin noted.
The memecoin market capitalization has decreased by 27.94% over the last year. Source: CoinMarketCap
Since the start of 2025, the overall memecoin market cap has experienced a notable decline. As of publication, it has plummeted nearly 49% to $48.49 billion, according to data from CoinMarketCap.
Nonetheless, while altcoins have historically shown greater volatility compared to Bitcoin, offering them alongside Bitcoin has proven financially beneficial for crypto exchanges and brokers.
Related: Anticipating altcoin season? Evidence suggests it’s already begun.
On February 12, Robinhood, which provides various cryptocurrencies to its users, reported a staggering 700% increase in cryptocurrency revenue for Q4 2024 compared to the previous year.
Some traders appear to view a memecoin’s listing on an exchange as a mark of its legitimacy. Among the 15 memecoins added by a prominent exchange in 2024, 12 experienced significant value increases post-listing, according to pseudonymous on-chain analyst Ai_9684xtpa.
CoinGecko’s founder Bobby Ong recently speculated that the memecoin sector may be on a trajectory towards an “extreme case of power law,” where an overwhelming majority fails and only a select few succeed and persist.
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