Most of the so-called memecoins that are flooding the US$2.6 trillion cryptocurrency space will probably end up “worthless”, according to Ark Investment Management founder and chief executive Cathie Wood.
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The combination of blockchain technology and artificial intelligence is creating “millions” of meme cryptocurrencies that “are not going to be worth very much”, Wood told Bloomberg Television on Tuesday, adding that her private funds are not putting money into these coins.
Memecoins are a type of digital asset often inspired by jokes, current events or trends in popular culture.
In February, the US Securities and Exchange Commission (SEC) said memecoins are not considered securities so they will remain unregulated.
“If I have one message for those listening who are buying memecoins: buyer beware,” Wood said. “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.”
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