ARK Invest CEO Cathie Wood Predicts That Memecoins Will Wind Up Becoming ‘Worthless.’

input: ARK Invest CEO Cathie Wood predicts that memecoins will wind up becoming ‘worthless.’ However she believes some coins like TRUMP will ‘withstand’ the test of time.

Ark Invest CEO Cathie Wood does not use her private funds to invest in memecoins. However, she believes that some coins, such as TRUMP, will "withstand" the test of time.

In an interview with Bloomberg television, Wood revealed that she prefers to put her money in the larger more established cryptocurrency such as Bitcoin (BTC), Ethereum (ETH) and Solana (SOL).

According to the ARK Invest founder, these crypto assets are currently "multiplying" and will only grow stronger overtime.

However, she warned traders putting their money into the memecoin market to "beware," because sooner than later the viral coins will be rendered "worthless."

“There’s nothing like losing money for people to learn, and they’ll learn that the SEC and regulators are not taking responsibility for these memecoins,”

But Ark Investment Management believes that some coins will “stand the judgment of time,” including the TRUMP (TRUMP) token.

In late February, the U.S. SEC’s Division of Corporation Finance stated that the agency does not view memecoins as securities. Instead, they are seen as “collectibles” and will remain largely unregulated.

At press time, memecoins have a combined market cap of $51.6 billion.

In December last year, the overall memecoin market cap reached a peak of $137 billion. Since then, it has decreased by $86 billion or more than 60%.

The market has seen many viral memecoins crash. These include the Argentinian President-endorsed LIBRA memecoin which experienced a 94% price collapse and the official TRUMP memecoin, which has fallen nearly 85% from its peak price.

According to on-chain data from ARK Intelligence, viral memecoin analyst Murad Mahmudov’s crypto portfolio, which consists mostly of memecoins, has fallen by more than 80% in just two months.

On Jan. 18, Murad’s crypto assets still reached a value of $54 million. However as of March 18, Murad’s assets are only worth around $12 million. On March 11, the value was even smaller, barely reaching $10 million.

The price of Murad’s main holding, spx6900 (SPX), fell from a high of $1.52 to $0.39, a drop of nearly 80%.

Aside from SPX, the crypto trader’s other memecoins, such as GIGA, RETARDIO, MOG (MOG) and MEMDEX, also fell sharply.

A recent report from Matrixport indicated that the memecoin market has shown no sign of recovering, even with the recent rise in global liquidity and the U.S. dollar weakening.

Not only that, leading memecoin launchpad Pump.fun’s daily revenue also decreased significantly in recent months.