When a cryptocurrency change lists its first altcoin, it units itself up for an infinite cycle of launching memecoins, warns a Bitcoin-only establishment govt.
“The minute an change provides one non-Bitcoin token, they’re signing as much as be on the eternally hamster wheel of memecoins,” River Monetary CEO Alex Leishman said in a March 29 X submit. “It is unnecessary to listing ETH if you happen to don’t listing the tokens issued on ETH, and the identical goes for Solana,” Leishman stated.
River has little interest in constructing a “profitable crypto on line casino”
Leishman stated whereas there are numerous “profitable crypto casinos,” he has little interest in constructing one. River Monetary is a Bitcoin-only monetary establishment specializing in shopping for and promoting Bitcoin (BTC). A number of corporations have opted for the Bitcoin-only method, together with Swan Bitcoin, Bull Bitcoin, and decentralized change Bisq.
Leishman claimed that multi-asset buying and selling platforms prioritize short-term hypothesis over wealth accumulation:
“The on line casino enterprise mannequin is constructed round maximal extraction from clients, and the Bitcoin-only mannequin is concentrated on serving to folks construct long-term wealth.”
Critics have voiced this level earlier than, even in the course of the memecoin uptrend in early 2024. In April 2024, A16z chief expertise officer Eddy Lazzarin stated that memecoins hamper the long-term vision of crypto that has saved so most of the authentic builders within the house.
“At finest, it appears like a dangerous on line casino,” Lazzarin stated.
The memecoin market cap is down 27.94% over the previous 12 months. Supply: CoinMarketCap
The general memecoin market cap has taken a major downturn because the starting of 2025. Since Jan. 1, the memecoin market cap has slumped virtually 49% to $48.49 billion on the time of publication, according to CoinMarketCap information.
Nevertheless, whereas altcoins have traditionally been extra unstable than Bitcoin, providing them alongside Bitcoin has been a profitable transfer for crypto exchanges and brokers.
Associated: Waiting for altcoin season? Data suggests it’s already here
On Feb. 12, Robinhood, which provides a number of cryptocurrencies to its clients, reported a 700% year-over-year surge in Q4 2024 cryptocurrency revenue.
Some merchants appear to interpret a memecoin itemizing on an change as validation of its credibility. Among the many 15 memecoins listed by crypto change Binance in 2024, 12 noticed vital will increase in worth after going stay on the change, pseudonymous onchain analyst Ai_9684xtpa said in November.
CoinGecko founder Bobby Ong recently speculated that the memecoin market could be headed towards an “excessive case of energy legislation,” the place 99.99% fail and some rise to the highest and endure.
Journal: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder
Source link