When a cryptocurrency exchange lists its first altcoin, it sets itself up for an endless cycle of launching memecoins

“The minute an exchange adds one non-Bitcoin token, they are signing up to be on the forever hamster wheel of memecoins,” River Financial CEO Alex Leishman

An executive at a Bitcoin-only institution has warned that cryptocurrency exchanges set themselves up for an endless cycle of launching memecoins when they list their first altcoin.

“The minute an exchange adds one non-Bitcoin token they are signing up to be on the forever hamster wheel of memecoins,” River Financial CEO Alex Leishman said in a March 29 X post.

“It makes no sense to list ETH if you don’t list the tokens issued on ETH, and the same goes for Solana,” Leishman said.

River has no interest in building a ‘successful crypto casino’

Leishman said that while there are many “successful crypto casinos,” he has no interest in building one. River Financial is a Bitcoin-only financial institution focusing on buying and selling Bitcoin (BTC). Several companies have opted for the Bitcoin-only approach, including Swan Bitcoin, Bull Bitcoin and decentralized exchange Bisq.

Leishman claimed that multi-asset trading platforms prioritize short-term speculation over wealth accumulation:

“They are in the business of providing a vehicle for short-term crypto speculation. At best, it looks like a risky casino, an endeavor that fundamentally misaligns incentives with long-term wealth accumulation.”

Critics have made this point before, even during the memecoin uptrend in early 2024. In April 2024, A16z chief technology officer Eddy Lazzarin said that memecoins hamper the long-term vision of crypto that has kept so many of the original builders in the space.

“At best, it looks like a risky casino,” Lazzarin said.

The memecoin market cap is down 27.94% over the past 12 months. Source: CoinMarketCap

The overall memecoin market cap has taken a significant downturn since the beginning of 2025. Since Jan. 1, the memecoin market cap has slumped almost 49% to $48.49 billion at the time of publication, according to CoinMarketCap data.

However, while altcoins have historically been more volatile than Bitcoin, offering them alongside Bitcoin has been a lucrative move for crypto exchanges and brokers.

Related: Waiting for altcoin season? Data suggests it’s already here

On Feb. 12, Robinhood — which offers several cryptocurrencies to its customers — reported a 700% year-over-year surge in Q4 2024 cryptocurrency revenue.

Some traders seem to interpret a memecoin listing on an exchange as validation of its credibility. Among the 15 memecoins listed by crypto exchange Binance in 2024, 12 saw significant increases in value after going live on the exchange, pseudonymous onchain analyst Ai_9684xtpa said in November.

CoinGecko founder Bobby Ong recently speculated that the memecoin market might be headed toward an “extreme case of power law,” where 99.99% fail and a few rise to the top and endure.