The CEO of the Bitcoin (BTC)-focused exchange River says he has no interest in providing access to anything other than the flagship crypto asset.

In a post on the social media platform X, River CEO Alexander Leishman says crypto exchanges that list altcoins – which is almost all of them – have become more like casinos stuck on a “forever hamster wheel of memecoins.”

“There are two paths for a crypto exchange/brokerage:

1. Bitcoin-only path – focus on helping people build and preserve long-term wealth through hard money. This path leads to an exchange looking more like a ‘bank’ long term.

2. Multi-asset trading platform – add as many coins as possible and build the business model around speculative trading. This leads to the exchange becoming more like a casino.

Both can make money, but these are the only two options. The minute an exchange adds one non-Bitcoin token, they are signing up to be on the forever hamster wheel of memecoins. It makes no sense to list ETH if you don’t list the tokens issued on ETH, and the same goes for Solana.

There are many successful crypto casinos, but I have no interest in building such a business. The casino business model is built around maximal extraction from customers, and the Bitcoin only model is focused on helping people build long-term wealth.”

According to River, currency debasement is vastly larger than officially admitted, and is the reason the exchange is Bitcoin-focused.

“There is a 275% gap between the inflation you’re told and real inflation.

This is why we Bitcoin.”

At time of writing, Bitcoin is trading for $82,100.

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When a cryptocurrency exchange lists its first altcoin, it sets itself up for an endless cycle of launching memecoins, warns a Bitcoin-only institution executive.

“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 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:

“The casino business model is built around maximal extraction from customers, and the Bitcoin-only model is focused on helping people build long-term wealth.” 

Critics have voiced 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 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.

Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder

]]> https://earlybirdsinvest.com/listing-an-altcoin-traps-exchanges-on-forever-hamster-wheel-river-ceo/feed/ 0 27982 https://earlybirdsinvest.com/hamster-kombat-layer-2-a-new-chapter-in-web3-gaming-on-ton/ https://earlybirdsinvest.com/hamster-kombat-layer-2-a-new-chapter-in-web3-gaming-on-ton/#respond Thu, 27 Feb 2025 04:19:15 +0000 https://earlybirdsinvest.com/hamster-kombat-layer-2-a-new-chapter-in-web3-gaming-on-ton/

Hamster Kombat, a popular Telegram-based tap-to-earn game, is taking the world of Web3 entertainment to new heights with the launch of its very own Layer-2 network. Built on The Open Network (TON), this new infrastructure—known as the Hamster Network—offers an efficient, scalable, and low-cost solution for game developers and decentralized applications (dApps).

The initiative aligns closely with the broader “HamsterVerse” ecosystem, promising fresh opportunities for gamers, creators, and the nearly one billion Telegram users who may soon discover the next generation of blockchain gaming.

A Leap Forward With TON

When the Hamster Kombat team unveiled their Layer-2 solution, they did so with the support of TON, a blockchain platform recognized for its speed, scalability, and user-friendly architecture. By leveraging the TON Virtual Machine (TVM) and fully compatible smart contracts, the Hamster Network is built to handle fast in-game transactions at a fraction of the usual blockchain costs. Transaction proofs are anchored back to TON’s Layer-1 so security and decentralization aren’t compromised.

The choice of TON as a foundational layer is an important strategic move. Telegram has already integrated mini-apps within its messaging platform, allowing diverse projects to reach countless users around the globe. By embedding the Hamster Network into this ecosystem, Hamster Kombat aims to reduce complexity for both developers and players—potentially onboarding millions more into the world of Web3.

Building Blocks of the Hamster Network

Beyond its gaming-centric philosophy, the Hamster Network introduces essential tools and services that benefit creators and users alike. Some of the core features include:

1. Native Wallet: A native wallet allows players to store, send and receive digital assets directly on the Hamster Network. This native integration is designed to make crypto transactions smooth even for those who don’t know how on-chain mechanics work.

2. Bridging Solutions: An asset bridge is provided for moving tokens between the Hamster Network and TON’s main chain. This interoperability keeps the network connected to the broader crypto world while preserving the speed and low costs.

3. Decentralized Exchange (DEX): The built-in DEX facilitates easy trading of tokens within the Hamster Network. Game tokens like HMSTR can be swapped directly on the chain, making it simpler for players to exchange rewards or diversify their holdings.

Stress Testing With “Hamster Boost”

To improve the networks infrastructure, the Hamster Kombat team has launched “Hamster Boost”, a blockchain testing initiative. Through various quests early adopters are requested to stress test the network by sending transactions, finding bugs and suggesting improvements. As a reward they can earn bounties and other goodies. By crowdsourcing quality assurance, the team aims to reinforce network stability before reaching a wider audience.

Enter the HamsterVerse

The Hamster Network launch is a pivotal element in the broader HamsterVerse—a connected realm of games and dApps built around the HMSTR token. Earlier this year, Hamster Kombat rebranded its signature tap-to-earn game into Hamster Kombat: GameDev Heroes, shifting the storyline toward running and expanding a virtual game studio. Other titles, such as Hamster Fight Club and Hamster King, are also in development, promising diverse gameplay experiences under one unified ecosystem.

By expanding this suite of Telegram-friendly titles, the HamsterVerse appeals to casual players and crypto enthusiasts alike. Each game is contributing to the HMSTR token economy and users can earn and spend them as they explore new adventures.

Surging Popularity and Token Performance

Hamster Kombat experienced a meteoric rise last year, briefly amassing over 300 million players. Although interest dipped following the initial HMSTR token airdrop—where some participants received only small allocations—community engagement has seen renewed momentum with the recent Layer-2 launch and the introduction of new gameplay seasons. HMSTR token is still below all time high but has proven to be resilient in a volatile market with new updates and increased utility in the HamsterVerse.

The Road Ahead

With the integration of Telegram’s mini-apps and the robust infrastructure provided by TON, Hamster Kombat’s Layer-2 network is forging a path that could shape the future of Web3 gaming. Multiple developers are already building on the Hamster Network, signaling potential for diverse and engaging content beyond the core tap-to-earn experience.

The Hamster Kombat team envisions a fully decentralized environment where every facet of the gaming process—from character creation to token distribution—resides on smart contracts. By putting creativity in the hands of developers and community members, the Hamster Network and the broader HamsterVerse will redefine online entertainment one tap at a time.

Final Thoughts

Hamster Kombat’s move to launch a Layer-2 network on TON positions the project at the forefront of a new era in blockchain gaming. With fast, cost-effective transactions and a growing catalog of interactive Telegram mini-apps, the Hamster Network strives to lower barriers for gamers, creators, and crypto newcomers. As more developers come on board, observers can expect a steady stream of fresh, immersive experiences—expanding the HamsterVerse and possibly reshaping the future of decentralized entertainment.

In a significant shift for Telegram-based gaming, Hamster Kombat launched DAO functionality, signaling a move toward a more transparent and community-driven model. After a period marked by uncertainty, this development aims to give HMSTR token holders a direct role in shaping the project’s future, ensuring that the game aligns more closely with the interests of its dedicated community.

Season 1 Backlash

In September 2024, Hamster Kombat faced significant community backlash following its Season 1 airdrop of HMSTR tokens. Approximately 63% of players were disqualified due to last-minute changes in eligibility criteria, notably the unexpected emphasis on in-game key collection over the previously highlighted Points Per Hour (PPH) metric. This abrupt shift led to widespread dissatisfaction, with many users feeling misled and frustrated by the lack of transparency and sudden alteration of reward qualifications.

The situation was further exacerbated by the game’s anti-cheat measures, which resulted in the banning of 2.3 million accounts. While intended to maintain fairness, these actions inadvertently disqualified legitimate players, intensifying the community’s discontent. The combination of these factors not only diminished trust in the platform but also contributed to a sharp decline in user engagement and a drop in the HMSTR token’s value.

Hamster Kombat DAO

With the introduction of a decentralized autonomous organization DAO, the project is transferring key decision-making capabilities into the hands of HMSTR token investors. Unlike many meme crypto projects that operate behind closed doors, Hamster Kombat revealed its plan to let participants vote on features, strategies, and policies. The dao aims to deliver genuine influence to hmstr token holders, granting them a say in the evolution of the ecosystem and ensuring that their interests guide the project’s future.

The move toward a DAO structure also addresses lingering concerns about trust and transparency. This change represents a firm step toward greater accountability, potentially mitigating community backlash and fostering renewed confidence among users.

Benefits for HMSTR Token Holders

The shift to a DAO governance model offers additional utility for the hmstr token, enabling holders to propose adjustments to the game, steer development priorities, and influence key updates. This empowerment extends beyond speculative trading and short-term gains, positioning hmstr token holders as active participants in shaping the project’s future.

This collaborative environment may help restore market optimism. Previous hmstr price analysis, referencing metrics like the moving average convergence divergence (MACD), the relative strength index (RSI), and identifying bearish divergence, suggested that investor sentiment had cooled over the past week.

The introduction of the DAO could provide a foundation for improved stability, potentially reversing declines toward all time low levels and steering the token back onto a growth trajectory. Some observers have noted Google Trends data tracking interest in the hmstr token, and community engagement may now serve as a counterbalance to negative indicators on the daily chart or the macd line.

Challenges and Future Prospects

Reports from financial institutions, including Vanguard Asset Management, previously accused hamster kombat operators of failing to meet expectations. Such claims contributed to waning trust and uncertainty about the project’s future. With the DAO now in place, Hamster Kombat confirmed its commitment to decentralization, demonstrating that decisions will not be made in isolation.

By recognizing that hmstr token holders and other users deserve a voice, the platform could build a stronger, more engaged community. The transparent structure may also help the project stand out from other meme crypto projects, as it replaces guesswork and speculation with verifiable voting records and community-led outcomes.

Future Outlook

The new DAO model has the potential to usher in a new era for Hamster Kombat hmstr, supporting long-term resilience and value. By empowering HMSTR token holders, encouraging more inclusive governance, and promoting fair play, the project is taking steps to restore confidence and foster a lasting, community-centered ecosystem.

As the DAO takes effect, many observers anticipate that this move will encourage many players to return, support innovation, and guide the project’s future toward tangible success. The community-driven approach may help the platform recover from previous uncertainties and transform it into a model for other projects seeking meaningful engagement and trust.

Ultimately, the decision to embrace a decentralized autonomous organization and integrate the community’s voice could redefine what it means to participate in a crypto-based tap-to-earn game, setting a new standard that places token holders at the heart of the decision-making process.

Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Owen Skelton.