Cathie Wooden, the CEO of Ark Funding Administration, warns most memecoins would ultimately grow to be nugatory.
The CEO mentioned his non-public funding agency wouldn’t spend money on any of them following her conviction on the absence of a long-term use case for the crypto asset class.
“ The mixture of blockchain know-how and synthetic intelligence is creating “thousands and thousands” of meme cryptocurrencies that “aren’t going to be price very a lot,” the ARK Funding Managment LLC founder and CEO informed Bloomberg Tv on Tuesday.
Cathie additional defined why memecoins aren’t a dependable asset class for funding, saying the SEC regulatory oversight doesn’t cowl memecoins.
“If I’ve one message for these listening who’re shopping for memecoins: purchaser beware,” mentioned Wooden. “There’s nothing like shedding cash for individuals to be taught, and so they’ll be taught that the SEC and regulators aren’t taking duty for these memecoins.”
Bullish on Utility Tokens
In addition to her pessimism for memecoins, Cathie believes crypto belongings with actual utility have an excellent case and make nice funding autos.
She mentioned that the use instances for Bitcoin, Ether and Solana are “multiplying” and can grow to be essential.
The investor has regularly mentioned that Bitcoin may surpass $1 million by 2030. Nevertheless, based mostly on worth, the world’s largest cryptocurrency is presently hovering underneath $82,000, down about 13% this yr.
Ark Funding Administration’s Crypto Holdings
ARK Funding Administration, led by Cathie Wooden, has vital crypto holdings and runs ARK 21 shares, a good crypto ETF.
ARK manages the ARK 21 Shares Bitcoin ETF (ARKB), which, after SEC approval, started buying and selling in January 2024.
An ETF permits traders to spend money on the value motion of crypto belongings with out proudly owning them straight.
Solely two ETFs exist; they have been launched final yr by the Gary Gensler-led SEC.
