ARK Invest CEO Cathie Wood has issued a stark warning about the future of memecoins, predicting that most of them will eventually become worthless. However, she noted that a few, such as the TRUMP token, might withstand the test of time.
Memecoins: A Risky Investment
In an interview with Bloomberg Television, Wood revealed that she does not invest her private funds in memecoins, citing their speculative nature. She pointed out that millions of these viral tokens, often created from internet memes and AI chatbots, will lose value over time.
Instead, the ARK Invest founder expressed confidence in well-established cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). She believes these assets are “multiplying” and will continue strengthening in the long term.
“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,” Wood cautioned traders.
Despite her skepticism, she acknowledged that some memecoins may prove resilient over time, mentioning TRUMP as an example.
SEC’s Stance on Memecoins
In February 2025, the U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance clarified that it does not classify memecoins as securities. Instead, they are considered collectibles and will remain unregulated.
Market Struggles and Declining Memecoin Valuations
At press time, memecoins collectively hold a $51.6 billion market cap—a steep drop from their December 2024 peak of $137 billion. This marks a 60% decline, with approximately $86 billion in value erased from the sector.
Many viral memecoins have experienced catastrophic crashes, including:
- LIBRA, a token once endorsed by Argentina’s President, which suffered a 94% price collapse.
- TRUMP, which has fallen 85% from its peak price.
Murad Mahmudov’s Portfolio Down 80%
On-chain data from ARK Intelligence highlights the sharp downturn in memecoins. Well-known memecoin analyst Murad Mahmudov saw his crypto portfolio, which was heavily invested in memecoins, drop by over 80% in two months.
- On January 18, 2025, Mahmudov’s assets were worth $54 million.
- By March 18, 2025, his holdings had plummeted to $12 million, briefly touching $10 million on March 11.
His primary holding, SPX6900, saw its price collapse from $1.52 to $0.39, a near 80% decline. Other memecoins in his portfolio, including GIGA, RETARDIO, MOG, and MEMDEX, also fell sharply.
Memecoin Market Shows No Signs of Recovery
A recent Matrixport report suggested that despite rising global liquidity and a weakening U.S. dollar, memecoins have shown no sign of recovery. Additionally, Pump.fun, a leading memecoin launchpad, has experienced a significant drop in daily revenue.
Final Thoughts
As memecoins continue their downward trajectory, Cathie Wood’s warning serves as a cautionary note for traders. While a few may endure, the overall outlook for memecoins remains grim, reinforcing the importance of careful investment choices in the crypto space.
