Cathie Wooden, the CEO of Ark Funding Administration, warns most memecoins would ultimately develop into nugatory.
The CEO mentioned his non-public funding agency wouldn’t put money into any of them following her conviction on the absence of a long-term use case for the crypto asset class.
“ The mix of blockchain know-how and synthetic intelligence is creating “hundreds of thousands” of meme cryptocurrencies that “aren’t going to be value 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 folks to study, and so they’ll study that the SEC and regulators aren’t taking accountability for these memecoins.”
Bullish on Utility Tokens
Moreover her pessimism for memecoins, Cathie believes crypto belongings with actual utility have a superb case and make nice funding automobiles.
She mentioned that the use circumstances for Bitcoin, Ether and Solana are “multiplying” and can develop into vital.
The investor has regularly mentioned that Bitcoin might surpass $1 million by 2030. Nevertheless, based mostly on worth, the world’s largest cryptocurrency is presently hovering below $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 put money into the worth motion of crypto belongings with out proudly owning them straight.
Solely two ETFs exist; they had been launched final yr by the Gary Gensler-led SEC.
