Cathie Wood Issues Grim Prediction for Memecoin Market

With the advent of new tokens, the memecoin market has recently drawn interest from investors worldwide, but Cathie Wood, the Founder and CEO of ARK Invest, is not convinced. She warns that most will eventually lose value because these tokens rely on celebrity hype.

Cathie Wood Shares Big Take on Memecoins

According to a Blomberg report, Cathie Wood said the value of most memecoins would eventually become worthless. She further stressed that the combination of blockchain technology and artificial intelligence is creating millions of meme digital assets that will not matter much in years to come.

It is important to state that Wood has consistently supported cryptocurrencies with strong fundamentals. While she views Bitcoin as a reliable store of value, Wood sees Ethereum and Solana as protocols with meaningful applications. 

As reported by CoinGape, ARK Invest recently acquired 997 BTC worth $80 million via Coinbase, reinforcing its Bitcoin strategy. 

However, she remains skeptical about memecoins, which she argues have no intrinsic value beyond social media-driven speculation.

Similarly, her comments state that the crypto market remains volatile. With a total market capitalization of around $2.6 trillion, many traders are still drawn to memecoins, hoping to capitalize on their rapid price movements. 

In January, Cathie Wood stated in an interview that she would not invest in TRUMP, calling it a token without real utility.

The US SEC Shares Stance on Memecoins

It is worth mentioning that regulatory clarity on memecoins has been a long-standing issue. In line with this trend, the U.S. Securities and Exchange Commission (SEC) recently weighed on the asset’s relevance. 

In a statement issued on February 27, 2025, the SEC’s Division of Corporation Finance declared that most memecoins do not qualify as securities. This means their creators and traders are not required to register with the agency.

Notably, the security agency statement has stirred up discussion in the digital asset community. Overall, many consider this pivot a bullish shift for memecoins overall.

Are Top Coins Like Dogecoin at Risk?

Unfortunately, the changing market conditions and policy shifts have put top memecoins in a fragile position.

For instance, the Elon Musk-backed Dogecoin has been testing key support levels. Analysts believe it could recover if it holds above $0.16, but long-term stability remains uncertain.

Analysts are convinced Shiba Inu could see a 500% increase before April, driven by increased token burns and ecosystem growth. However, these predictions remain speculative, and market sentiment could shift quickly.

Frog-themed memecoin, PEPE eyes a 40% breakout amid a bull run shift in recent weeks. Others expect gains as high as 50%–60% in the long term. However, given the volatile nature of memecoins, these projections should be viewed cautiously.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.