CEO Cathie Wood rejects Trump Coin while continuing her investment strategies through Bitcoin alongside Ethereum and Solana.
ARK Invest CEO Cathie Wood has rejected Trump Coin (TRUMP) investment as a memecoin without genuine application. During her January 22 Bloomberg interview Wood maintained her steadfast support for the Bitcoin ecosystem alongside Ethereum and Solana and their transformative capabilities in decentralized finance (DeFi).
“[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 memecoin of President Trump himself.”
According to Wood the current memecoin rally has similar dynamics to the 2017 initial coin offering (ICO) market which amplified blockchain technology recognition worldwide. The massive 11,000% jump achieved by TRUMP during its inaugural hour failed to convince Wood about its lasting financial value.
TRUMP Coin Investor Surge
The ARK Invest team has steered clear of memecoins because of their main investment focus on the three major digital currencies. She explained that ARK invest follows a strategy which focuses primarily on the “big three” investments.
The memetokens TRUMP and MELANIA received considerable attention despite their launch. The blockchain analytics firm Chainalysis has found that 94% of TRUMP and MELANIA tokens currently rest with 40 crypto whales who maintain accounts worth at least $10 million each.
Analysis shows wallets containing between $1 million and $10 million own 2.1% of the tokens but wallets holding assets worth $100,000 up to $1 million control 1.7% of the tokens. The distribution of TRUMP tokens shows high-value investors control 97.8% of the market while owners with less than $100,000 invest in just 2.2% of token supply.
Chainalysis reports the recent growth of new crypto investors attracted to the market by the new tokens. Half of all TRUMP token purchasers established their digital wallets on the exact day they made their purchase which signals new people entering the crypto market.
DeFi development will dramatically transform financial services according to Wood as she remains confident about this decentralized Ethereum and Solana-powered movement. At the same time Wood maintains total confidence in Bitcoin because she continues to stand by her previous prediction that BTC will reach $1 million by 2030.
Trump coin market activity helped increase memecoin activity by 30% yet analysts struggle to define sustainability dynamics for these tokens. However, for Wood, the focus remains clear: People should put their money into cryptocurrencies that focus on fundamental principles and decentralized applications.
