Some fellow "venture capitalists" would disagree with you. But we both know that they are nothing but newbie entrants with a 100$ in their pocket ready to gamble on every new startup that comes up. It makes them feel good and allow them to get that investment banker feel, you know?

Point is that people will keep on attempting to turn 10 into 1000 and doing so they will dig up new and new shitcoins to get their money multiplied at the expense of their investors. So when they need to get listed they need an exchange, and so new ones come up. You can relate this to a demand supply balance. But how many of them are going to last is another question.