Cathie Wood warns: Most memecoins may end up being worthless

Cathie Wood, founder and CEO of ARK Investment Management LLC, expressed skepticism about the long-term value of so-called meme coins in the cryptocurrency market on Tuesday. In an interview with Bloomberg Television, Wood discussed the proliferation of meme-based digital currencies in the $2.6 trillion cryptocurrency space, predicting that many of them will likely become "worthless."

Wood noted that the intersection of blockchain technology and artificial intelligence has led to the creation of "millions" of such cryptocurrencies. She stressed that her private equity fund is avoiding investing in these volatile assets.

This cautious stance comes after the U.S. Securities and Exchange Commission (SEC) made it clear in February that meme coins do not fall into the category of securities and will remain unregulated. The lack of regulation in this area of ​​the cryptocurrency market has caused concern among some investors and market observers.

Wood issued a warning to potential memecoin investors: "If I had one message for my listeners who are buying meme coins: caveat emptor." She added that learning from financial losses can be a harsh but effective teacher, suggesting that buyers should realize that regulators like the SEC will not be held accountable for such speculative investments.