Cathie Wood, CEO of ARK Invest, has stated that her company will not invest in the Trump memecoin, TRUMP, due to its apparent lack of utility. In an interview on January 22, Wood stated that, while there were rumors about the potential benefits of holding the coin—such as seeing President Trump—she saw no real value in it. She described the coin as a “memecoin,” stressing that it had no significant use case.
Speculation and public curiosity, rather than any intrinsic financial utility, often determine the value of memecoins like TRUMP, which have recently gained popularity. Despite this, Wood has decided to direct ARK Invest’s resources into more established cryptocurrencies such as Bitcoin, Ethereum, and Solana. These, she argues, provide more stability and long-term promise to investors.
Wood compared the current surge of memecoins to the 2017 initial coin offering (ICO) excitement, which contributed to the mainstreaming of cryptocurrencies. However, she stressed that, while the ICO movement aroused attention, it did not necessarily provide long-term value to investors.
TRUMP coin experienced a rapid spike in value following its initial launch, soaring by 11,000% immediately thereafter. However, like many other memecoins, its value has been extremely erratic, and its future is questionable.Wood also expressed her enthusiasm for decentralized finance (DeFi), particularly platforms such as Ethereum and Solana, which she feels will play an important role in the growth of the financial services industry. She restated her conviction that Bitcoin may reach $1 million by 2030, making it a key component of ARK Invest’s crypto strategy.
Despite the excitement surrounding TRUMP and other memecoins, Wood’s position remains clear: she will continue to focus on the major cryptocurrencies that she feels provide actual, long-term value.
