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HomeNewsCathie Wood Labels Trump Coin a "Memecoin without utility": Stays Loyal to...

Cathie Wood Labels Trump Coin a “Memecoin without utility”: Stays Loyal to Bitcoin, Ethereum, and Solana

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  • Cathie Wood, CEO of ARK Invest, dismissed Trump Coin as a “memecoin without utility,” emphasizing her focus on established cryptocurrencies like Bitcoin, Ethereum, and Solana.
  • Despite the hype around TRUMP and MELANIA tokens, Wood remains optimistic about the future of decentralized finance, particularly projects rooted in Ethereum and Solana.

Cathie Wood, CEO and Chief Investment Officer of ARK Invest, has shared a piece of her mind on the trending Trump Coin during an interview with a leading news outlet on January 22.

Notably, launched just before Donald Trump’s inauguration as the 47th president of the United States, the TRUMP token has captured news headlines, surging by an astounding 11,000% within hours of its debut. However, Wood dismissed the token, labeling it a “memecoin without utility.”

[Trump Coin] isn’t going to have any utility,” Wood stated.

Speculation has swirled around potential perks of owning the token, such as exclusive access to events with President Trump, but Wood expressed skepticism.

So far, we don’t know of much utility for this coin, except that it is a memecoin of President Trump himself.

Drawing a parallel to the 2017 Initial Coin Offering (ICO) craze, Wood acknowledged the role such trends play in increasing public interest in cryptocurrency.

The ICO movement really brought curiosity about this new technology to a whole new group of people, she said,

though she noted the lack of substance in many of these projects.

Despite the hype surrounding memecoins, including TRUMP and the Official Melania Meme (MELANIA) token, Wood reaffirmed her focus on established cryptocurrencies like Bitcoin, Ethereum, and Solana.

We’ve pretty much stayed away from the memecoins. We’re very focused on the big three, she said.

Wood has been an outspoken advocate for Bitcoin’s potential, reiterating her prediction that it could surpass $1 million by 2030.

The rise of TRUMP and MELANIA tokens has undeniably captured attention, with trading volumes for memecoins surging by 30% in the past week to reach $17.98 billion.

However, blockchain analytics firm Chainalysis revealed a concerning concentration of ownership. According to their data, 40 whales control 94% of the combined supply of TRUMP and MELANIA tokens. Wallets holding between $1 million and $10 million make up an additional 2.1%, while smaller holders account for a mere 3.9%.

Despite this imbalance, the tokens have introduced a wave of new users to the crypto ecosystem. Chainalysis noted that nearly half of TRUMP buyers created wallets on the same day they purchased the token, suggesting that these memecoins are attracting first-time crypto investors.

Looking ahead, Wood remains optimistic about the broader cryptocurrency landscape, particularly decentralized finance (DeFi).

We think the decentralized financial services movement, some people call it DeFi or internet financial services, is going to be big.

That’s very Ethereum- and Solana-based, she remarked, underscoring her commitment to projects with robust utility and long-term potential.

While Trump Coin may represent the latest fad in the crypto world, Wood’s steadfast loyalty to Bitcoin, Ethereum, and Solana underscores her focus on substance over spectacle in the evolving digital asset space.

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