Cathie Wood Dismisses Trump Coin, Says It Lacks Real-world Utility  | Coinspeaker
LightChain

Cathie Wood Dismisses Trump Coin, Says It Lacks Real-world Utility 

Unlike speculative tokens such as TRUMP, ARK Invest has historically focused on digital assets with clear use cases and long-term adoption potential.

Chimamanda U. Martha By Chimamanda U. Martha Julia Sakovich Edited by Julia Sakovich Updated 4 mins read
Cathie Wood Dismisses Trump Coin, Says It Lacks Real-world Utility 
Photo: CityofStPete / Flickr

Key Notes

  • Cathie Wood has dismissed Trump's newly launched memecoin for its lack of utility, noting that it will not be part of ARK Invest's crypto portfolio.
  • She disclosed that the company would rather invest in Bitcoin, Ethereum and Solana, refering to them as the big three.
  • The ARK Invest's boss has been singing Bitcoin's praises, predicting the assets potential to hit $1 million by 2030.

Cathie Wood, the CEO and chief investment officer of ARK Invest, has made it clear she will not be investing in Donald Trump’s newly launched cryptocurrency, the Official Trump token TRUMP $17.26 24h volatility: 1.2% Market cap: $3.46 B Vol. 24h: $1.08 B .

In a January 22 interview with Bloomberg, Wood criticized the token’s lack of real-world utility, stating that while there’s speculation it could grant holders exclusive access to Trump, she sees little value in it beyond its status as a meme coin.

“[Trump Coin] Isn’t going to have any utility […] 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 himself,” she said.

ARK Invest’s Crypto Holdings and Investment Strategy

Her comments come amid a growing debate over the legitimacy of meme coins, particularly those tied to political figures. The TRUMP token, which launched just before Trump’s January 20 inauguration, skyrocketed 11,000% in value within hours, fueling a broader surge in memecoin trading volumes, which hit nearly $18 billion last week.

Unlike speculative tokens such as TRUMP, ARK Invest has historically focused on digital assets with clear use cases and long-term adoption potential. Wood has been a vocal advocate for Bitcoin BTC $96 337 24h volatility: 1.5% Market cap: $1.91 T Vol. 24h: $31.32 B , frequently predicting that BTC could surpass $1 million by 2030.

ARK Invest also holds a significant stake in Coinbase (COIN), one of the leading publicly traded crypto exchanges. Wood has praised the exchange’s role in bridging traditional finance and the crypto economy, viewing it as a key player in the industry’s long-term growth.

Wood said she would rather focuse on the “big three” referring to Bitcoin, Ethereum and Solana instead of throwing money on Trump’s newly launched meme coin.

“We’ve pretty much stayed away from the meme coins. We’re very focused on the big three,” she said.

Skepticism Over TRUMP Coin and Political Meme Coins

Wood’s dismissal of the TRUMP token underscores her broader skepticism toward meme coins, which often experience extreme volatility and lack underlying fundamentals. She compared the current memecoin frenzy to the 2017 initial coin offering (ICO) boom, which introduced many new investors to crypto but also led to widespread speculation and regulatory scrutiny.

Her concerns, however, are not unique. Blockchain analytics firm Chainalysis recently reported that the TRUMP token and the Official Melania Meme (MELANIA) token are heavily concentrated among a small group of wealthy holders. According to the company, just 40 crypto whales control 94% of the total supply of both tokens, raising concerns about market manipulation.

Despite these issues, the TRUMP token has attracted a flood of new users. Data from DexScreener shows that 790,000 wallets now hold TRUMP, while 343,000 wallets hold MELANIA. Chainalysis noted that nearly half of TRUMP token buyers created new wallets on the same day they purchased the token, suggesting a wave of first-time crypto users entering the market.

Wood’s Broader Outlook on Crypto and DeFi

Beyond her stance on TRUMP token, Wood remains highly optimistic about the broader crypto ecosystem. In her Bloomberg interview, she reiterated her confidence in decentralized finance (DeFi), describing it as the future of financial services.

“We think that the decentralized financial services movement, some people call it DeFi or internet financial services, is going to be big,” she said. “That’s very Ethereum and Solana-based.”

Her views align with ARK Invest’s ongoing strategy of supporting blockchain projects that drive real-world innovation. As the crypto market continues to evolve, Wood’s focus remains on assets that offer long-term growth potential rather than short-term hype.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Altcoin News, Cryptocurrency News, News
Chimamanda U. Martha

Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

Chimamanda U. Martha on X