Cathie Wood Questions the Utility of Trump Coin, Says Ark Invest Has Avoided Memecoin Investments

Cathie Wood, the founder of asset management firm Ark Invest, expressed uncertainty about the utility of President Donald Trump's coin on Wednesday, adding that her company has avoided memecoin investments.

Cathie Wood, founder and CEO of asset management firm Ark Invest, expressed uncertainty about the utility of President Donald Trump’s coin on Wednesday, adding that her company has largely steered clear of memecoin investments.

During an interview with Bloomberg TV, Wood described the launch of Official Trump (TRUMP) as part of a “memecoin moment,” and said that only time will tell if the cryptocurrency becomes useful in some way.

“I mean there is speculation that you’ll get to meet President Trump as one of the utilities of owning this coin. I don’t know if that’s the case or not. But so far, we don’t know of much utility for this coin, except that it is a meme coin of President Trump,” the veteran investor said.

That said, Wood noted that the launch could potentially symbolize the “next phase of the cryptocurrency revolution.”

.@ARKInvest CEO and CIO Cathie Wood says we don't know if President Trump's memecoin holds much utility, but Trump is "ushering in the next phase of the crypto revolution." She speaks with @scarletfu, @kgreifeld and @EricBalchunas on "ETF IQ" https://t.co/YbD2ANk8TA

When asked if she would buy the cryptocurrency, Wood responded that Ark Invest has mostly avoided meme coins, focusing instead on the “Big Three,” namely Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

See Also: Michael Saylor’s Proposal To Increase MicroStrategy’s Share Count Approved By Shareholders — More Bitcoin Purchases On The Cards?

The meme coin, which was launched last weekend, has seen wild fluctuations in its price and capitalization.

At its peak, the coin spawned a fully diluted valuation of nearly $75 billion, which is more than many reputed publicly-listed firms. As of this writing, the valuation has halved to $36.79 billion.

Entities affiliated with The Trump Organization control 80% of the coin’s supply. When President Trump was asked about the "several billion dollars" the memecoin has raked in, he deemed them “peanuts.”

Price Action: At the time of writing, TRUMP was trading at $36.59, down 11.94% over the past 24 hours, according to CoinMarketCap.

Image via Flickr