Cathie Wooden, the CEO of Ark Funding Administration, warns most memecoins would ultimately turn into nugatory.
The CEO mentioned his personal 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 mixture of blockchain know-how and synthetic intelligence is creating “tens of millions” of meme cryptocurrencies that “should not going to be value very a lot,” the ARK Funding Managment LLC founder and CEO advised Bloomberg Tv on Tuesday.
Cathie additional defined why memecoins should not 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 dropping cash for individuals to study, and so they’ll study that the SEC and regulators should not taking accountability for these memecoins.”
Bullish on Utility Tokens
Apart from her pessimism for memecoins, Cathie believes crypto property with actual utility have an excellent case and make nice funding autos.
She mentioned that the use circumstances for Bitcoin, Ether and Solana are “multiplying” and can turn into essential.
The investor has often mentioned that Bitcoin might surpass $1 million by 2030. Nonetheless, based mostly on worth, the world’s largest cryptocurrency is at present hovering beneath $82,000, down about 13% this 12 months.
Ark Funding Administration’s Crypto Holdings
ARK Funding Administration, led by Cathie Wooden, has important 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 buyers to put money into the value motion of crypto property with out proudly owning them immediately.
Solely two ETFs exist; they had been launched final 12 months by the Gary Gensler-led SEC.
