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In an interview with Bloomberg TV, Wood explained that the combination of blockchain technology and artificial intelligence has led to the creation of “millions” of memecoins, which, in her view, “will have no value.” She also added that her private equity fund will not invest in these currencies.
Cathie Wood Weighs in on Memecoins
“If I had one thing to say to people who buy memecoins, it would be: buy with caution. There’s nothing better than losing money to teach people a lesson, and they’ll understand that the SEC and other regulators won’t be held responsible for these memecoins.” Wood further stated that memecoins will eventually become “digital collectibles,” with some possibly “standing the test of time.” She also suggested that Trump-related memecoins could be one of those that endure.
Wood reiterated her optimism about more established cryptocurrencies, saying that use cases for Bitcoin, Ethereum, and Solana are “rapidly increasing” and that these coins will play an important role in the future.
Despite being a large portion of the crypto market, memecoins have recently garnered a great deal of negative attention, particularly with the rise of celebrity-driven meme coins that have been involved in major collapses, including the $LIBRA rug pull. As a result, memecoins have shifted from being simple trends to becoming an outlet for rug pulls and scams, necessitating a higher level of vigilance.
CZ, in a now-deleted tweet, echoed similar sentiments about memecoins. He remarked that the primary goal of investors in these coins is to seek quick financial gains. “People say they love memes. What they mean is they love for you to tell them which token(s) to buy to make a quick buck,” he added.