Cathie Wood, the CEO of Ark Investment Management, warns most memecoins would eventually become worthless.
The CEO said his private investment firm would not invest in any of them following her conviction on the absence of a long-term use case for the crypto asset class.
“ The combination of blockchain technology and artificial intelligence is creating “millions” of meme cryptocurrencies that “are not going to be worth very much,” the ARK Investment Managment LLC founder and CEO told Bloomberg Television on Tuesday.
Cathie further explained why memecoins are not a reliable asset class for investment, saying the SEC regulatory oversight does not cover memecoins.
“If I have one message for those listening who are buying memecoins: buyer beware,” said Wood. “There’s nothing like losing money for people to learn, and they’ll learn that the SEC and regulators are not taking responsibility for these memecoins.”
Bullish on Utility Tokens
Besides her pessimism for memecoins, Cathie believes crypto assets with real utility have a good case and make great investment vehicles.
She said that the use cases for Bitcoin, Ether and Solana are “multiplying” and will become important.
The investor has frequently said that Bitcoin could surpass $1 million by 2030. However, based on value, the world’s largest cryptocurrency is currently hovering under $82,000, down about 13% this year.
Ark Investment Management’s Crypto Holdings
ARK Investment Management, led by Cathie Wood, has significant crypto holdings and runs ARK 21 shares, a reputable crypto ETF.
ARK manages the ARK 21 Shares Bitcoin ETF (ARKB), which, after SEC approval, began trading in January 2024.
An ETF allows investors to invest in the price action of crypto assets without owning them directly.
Only two ETFs exist; they were launched last year by the Gary Gensler-led SEC.
