Popular investor Cathie Wood has expressed her concerns over memecoins that are currently part of the $2.6 trillion cryptocurrency market, stating that most of them will prove to be worthless.
During a Bloomberg interview on March 18, Wood, the founder and CEO of Ark Investment Management, expressed her doubts about meme-based cryptocurrencies and advised investors to be cautious.
As stated by Wood, the integration of blockchain technology and artificial intelligence is leading to the emergence of millions of meme cryptocurrencies. However, she says that these coins, which are often based on jokes or popular culture references, will not be valuable in the long run.
“Buyer beware,” Wood said this while noting that the SEC and regulators have not assumed responsibility for memecoins.
However, as the popularity of memecoins increased, one of which was created by the former President of the United States, Donald Trump, trading volumes worth billions of dollars, they have recently plummeted. Wood further stated that some may turn into “digital curiosities” while the rest will be forgotten.
However, she is not entirely bearish on memecoins as she has high expectations on more established coins such as Bitcoin, Ether, and Solana. She thinks that their application areas are growing and they will be important in the future.
Also Read: Cathie Wood Leads Ark Invest to Buy BTC of $80M on Coinbase
