Cathie Wood warns most memecoins may become worthless

Published 18/03/2025, 20:52
Cathie Wood warns most memecoins may become worthless

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.