Cathie Wood, the founder of asset management firm Ark Invest, warned investors Tuesday that most meme coins won't have high worth in the future and "fearsome declines" could be expected.
What happened: During an interview with Bloomberg Podcasts, Wood doubted the sustainability of several new meme coins that have sprung up recently.
"Most of them are not going to be worth very much. We think there are just going to be a few crypto assets that will gain most of the spoils in the entire ecosystem," the seasoned investor said.
Wood said it's up to the investors to be aware of the risks associated with meme coins, especially after the SEC clarified that they do not fall under the purview of federal securities laws.
"What we think will happen is there will be some fearsome declines in the prices of some of these meme assets, and you know there’s nothing like losing money for people to learn, and they’ll learn that the SEC regulators are not taking responsibility," Wood added.
See Also: Crypto Leaders Step Up Pressure On SEC As Trump’s Policies Reshape Regulatory Landscape
Wood carefully dodged a question on whether President Donald Trump's Official Trump (CRYPTO: TRUMP) meme coin will also become worthless, instead predicting that meme coins will end up as "collector's items."
Why It Matters: Wood’s views were intriguing, given that she stated in January that the TRUMP meme coin launch may represent the “next phase of the cryptocurrency revolution.“
Wood's firm Ark Invest has avoided meme coin investments, and she clarified earlier that their focus was on the "Big Three," namely Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Solana (CRYPTO: SOL).
Premier cryptocurrency exchanges like Coinbase said last month that they'd follow a market-driven strategy for meme coins, allowing users to trade even "low quality" tokens if they desired.
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