Most memecoins will become ‘worthless’: Ark Investment CEO Cathie Wood warns

The combination of blockchain technology and artificial intelligence is creating "millions" of meme cryptocurrencies that "are not going to be worth very much," Wood told Bloomberg Television on Tuesday, adding that her private funds do not invest in these coins.

Memecoins, often inspired by jokes, trends, or pop culture, have gained traction in the crypto space. However, their speculative nature raises concerns among investors.

In February, the U.S. Securities and Exchange Commission (SEC) ruled that memecoins are not considered securities and will remain unregulated, as reported by South China Morning Post.

Different cryptocurrencies. Illustration from Pexels

"If I have one message for those buying memecoins: buyer beware," Wood said. "There’s nothing like losing money for people to learn, and they’ll learn that the SEC and regulators are not taking responsibility for these memecoins."

She predicted that most memecoins would become "digital collectors’ items," with only a few standing the test of time.

Wood reaffirmed her confidence in established cryptocurrencies like bitcoin, ether, and solana, stating their use cases are "multiplying" and will play a key role in the future.