Cathie Wood says most meme coins will end up 'worthless'

Bloomberg

Most of the so-called meme coins that are flooding the $2.6 trillion cryptocurrency space will probably end up "worthless," according to Cathie Wood. 

The combination of blockchain technology and artificial intelligence is creating millions of meme cryptocurrencies that "are not going to be worth very much," the ARK Investment Management founder and CEO told Bloomberg Television on Tuesday, adding that her private funds are not putting money into these coins. 

Meme coins are a type of digital asset often inspired by jokes, current events or trends in popular culture. In February, the Securities and Exchange Commission said meme coins are not considered securities so they will remain unregulated.

"If I have one message for those listening who are buying meme coins: 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 meme coins."

The digital tokens made headlines days before President Donald Trump took office, when he launched a memecoin of himself. The coin attracted billions of dollars of trading volume in a short span of time but has since plummeted in value. 

Meme coins will become "digital collectors' items," she said, adding that some will "withstand the judgment of time," and Trump's meme coin may be one of them.

Wood reiterated her bullish view on larger, more established crypto assets. She said that the use cases for bitcoin, ether and solana are "multiplying" and will become important in the future.

The investor has frequently said that bitcoin could surpass $1 million by 2030. The world's largest cryptocurrency based on value is currently hovering under $82,000, down about 13% this year.