Cathie Wood, the founder of asset management firm Ark Invest, expressed uncertainty about the utility of President Donald Trump’s coin on Wednesday, adding that her company has avoided memecoin investments.
What Happened: During an interview with Bloomberg TV, Wood labeled the launch of Official Trump (TRUMP) as part of a “memecoin moment,” but only time will tell if it becomes useful in some way.
“I mean there is speculation that you’ll get to meet President Trump as one of the utilities of owning this coin. I don’t know if that’s the case or not. But so far, we don’t know of much utility for this coin, except that it is a meme coin of President Trump,” the veteran investor said.
That said, Wood noted that the launch could potentially symbolize the “next phase of the cryptocurrency revolution.”
When asked if she would buy the cryptocurrency, Wood responded that Ark Invest has mostly stayed away from meme coins, focusing instead on the “Big Three,” namely Bitcoin BTC/USD, Ethereum ETH/USD, and Solana SOL/USD.
See Also: Michael Saylor’s Proposal To Increase MicroStratagy’s Share Count Approved By Shareholders — More Bitcoin Purchases On The Cards?
Why It Matters: The meme coin, which was launched last weekend, has seen wild fluctuations in its price and capitalization.
At its peak, the coin spawned a fully diluted valuation of nearly $75 billion, well over many reputed publicly-listed firms. As of this writing, the valuation has halved to $36.79 billion.
Entities affiliated with The Trump Organization control 80% of the coin’s supply. When President Trump was asked about the "several billion dollars" the memecoin has raked in, he deemed them “peanuts.”
Price Action: At the time of writing, TRUMP was exchanging hands at $36.59, crashing 11.94% in the last 24 hours, according to data from CoinMarketCap.
Image via Flickr
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