By The CEO of cryptocurrency exchange River, Alex Leishman, has illustrated that listing altcoins could put trading platforms on an unending cycle, likened to a ‘forever hamster wheel’. Altcoins differ from mainstream digital currencies, including Bitcoin and Ethereum, and refer to any alternative cryptocurrency coins.
According to Leishman, exchanges that focus on listing an increasing number of altcoins can find themselves entwined in this cycle. They constantly have to monitor the new coins to ensure they’re not facilitating illegal activities, a situation described as the ‘hamster wheel effect’. Thus, the security and complexity of maintaining such a model can be challenging for exchanges.
The River CEO further explained that focusing solely on Bitcoin allows their exchange to avoid such tricky situations. This singular-focus strategy also sets the company apart in an industry where multitudes of altcoins are listed daily. By reducing the number of coins, River ensures that they are not inadvertently supporting dubious or malicious practices.
While many exchange platforms are keen on listing many altcoins to expand their market share, River takes a different approach to ensure security and manageability. The increasing complexity and continual monitoring required makes it easy for various exchanges to fall into the ‘hamster wheel’ trap. Leishman’s insights provide an alternative viewpoint within the booming cryptocurrency industry, challenging the tendency to list a multitude of altcoins.
Source: Cointelegraph
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