You can also read this news on COINTURK NEWS: Experts Warn: Memecoins Face Significant Value Risks
With new tokens entering the market, the memecoin sector is attracting global attention. However, Cathie Wood, the Founder and CEO of ARK Invest, maintains a cautious stance towards these developments. Wood indicates that most memecoins benefit from the popularity created by famous figures, which leads to a tendency for them to lose value over time. This situation raises questions about investors’ trust in assets that are influenced by social media.
Cathie Wood emphasizes that memecoins are unlikely to achieve lasting value. In an era where millions of crypto assets emerge due to blockchain technology and artificial intelligence, it is predicted that these tokens will not hold significant importance.
Cathie Wood: “Most memecoins will become meaningless over time.”
Wood highlights the clear risks associated with these assets that lack solid foundations. She continues to support cryptocurrencies with a trustworthy basis, asserting Bitcoin’s strong position as a store of value, while noting that protocols like Ethereum and Solana possess meaningful applications. ARK Invest recently purchased 997 Bitcoins for $80 million through Coinbase to strengthen its Bitcoin strategy.
The U.S. Securities and Exchange Commission (SEC) has recently commented on the status of memecoins. The SEC’s Corporate Finance Division clarified that most memecoins do not qualify as securities, indicating that record-keeping requirements for involved parties are unnecessary. Market commentators suggest that
In light of these statements and regulatory assessments, the risks associated with the memecoin market serve as a warning for investors. Observed volatility and uncertainty may complicate the development of long-term strategies despite short-term fluctuations. These developments may lead investors to reassess their asset selection approaches based on solid foundations.
Market experts note that technological advancements and regulatory changes will significantly impact the crypto world. Current data and statements emphasize the importance of careful evaluation for investors, necessitating risk management and the consideration of long-term strategies in decision-making processes.
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