Would Cathie Wood Buy TRUMP Coin? Here’s What She Said

Cathie Wood, the founder of Ark Invest, recently voiced her skepticism regarding the practical utility of President Donald Trump’s newly launched cryptocurrency, Official Trump (TRUMP). In an interview with Bloomberg TV, Wood described the coin as part of the current “memecoin moment,” a trend where cryptocurrencies are created more for their viral potential than for substantive utility. She highlighted that while there is speculation about perks like meeting President Trump for coin hodlers, the actual utility of the coin remains unclear.

Wood emphasized Ark Invest’s investment strategy, which avoids speculative investments like meme coins. Instead, her firm concentrates on established cryptocurrencies with clear utility and potential for growth, specifically naming Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) as their focus areas, or what she calls the “Big Three.” This approach reflects a broader strategy of investing in assets that offer long-term value rather than short-term hype.

The TRUMP coin, launched with much fanfare just less than a week ago, saw dramatic price swings. It briefly hit an all-time high of $75.35, pushing its fully diluted market cap to nearly $75 billion, surpassing many established companies. However, its value has since plummeted to $36.38 per coin, marking a 51.42% drop. This volatility is characteristic of meme coins, which often see rapid price increases followed by sharp declines due to speculative trading rather than fundamental value.

Ownership of the TRUMP coin is heavily concentrated, with entities linked to The Trump Organization holding 80% of the supply. This concentration adds to the coin’s speculative nature, as it suggests potential for market manipulation or control by a few major hodlers. When questioned about the billions in market cap his coin had generated, President Trump referred to these figures as “peanuts,” indicating a dismissive attitude towards the financial implications of the coin’s market performance.

Latest trading data shows TRUMP coin with a volume of $5.95 billion, reflecting a 56% drop over the past 24 hours. This highlights the coin’s volatility and speculative nature, reinforcing Wood’s cautious view on meme coins. Her comments suggest a broader caution in the investment community about the rush into cryptocurrencies without clear utility or a solid foundation in blockchain technology or economic principles.

Wood’s perspective on the TRUMP coin encapsulates a critical view of the crypto market’s current trends, where the excitement around new, high-profile entries needs to be balanced with a focus on the intrinsic value and technological innovation that should underpin the cryptocurrency space.

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