On Tuesday, Cathie Wood, founder and CEO of ARK Investment Management LLC, expressed skepticism about the long-term value of so-called memecoins in the cryptocurrency market. During an interview with Bloomberg Television, Wood discussed the proliferation of meme-based digital currencies within the $2.6 trillion cryptocurrency space, predicting that many will likely become "worthless."
Wood pointed out that the intersection of blockchain technology and artificial intelligence has led to the creation of "millions" of these cryptocurrencies. She emphasized that her private funds are steering clear of investing in these volatile assets.
This cautionary stance comes after the US Securities and Exchange Commission (SEC) clarified in February that memecoins do not fall under the category of securities and will therefore remain unregulated. The lack of oversight in this area of the cryptocurrency market has raised concerns among some investors and market watchers.
Wood issued a warning to potential investors in memecoins, saying, "If I have one message for those listening who are buying memecoins: buyer beware.” She added that learning from financial losses can be a harsh but effective teacher, suggesting that buyers should be aware that regulators like the SEC will not take responsibility for these types of speculative investments.
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