Cathie Wood says most memecoins are worthless
Cathie Wood warns memecoin market is a hype cycle bound to crash.
The $2.6 trillion cryptocurrency market is increasingly overwhelmed by memecoins, and prominent investor Cathie Wood warned that most of these tokens will ultimately crash. Wood emphasized that the flood of new coins—spurred by advances in AI and blockchain technology—is merely a hype cycle destined to leave investors holding worthless tokens.
“There are millions of memecoins being created, and they are not going to be worth very much,” she said, adding that her private funds are avoiding such high-risk assets, reports Cryptopolitan.
Wood also noted that the U.S. Securities and Exchange Commission (SEC) has no plans to regulate these tokens, urging buyers to exercise extreme caution.
Trump’s Memecoin: A Case Study in Volatility
Just days before taking office, former President Donald Trump launched his own memecoin, which initially attracted billions in trading volume before its price rapidly collapsed. The swift rise and subsequent fall of Trump’s token underscore Wood’s concerns about the inherent volatility and lack of utility in memecoins.
While some investors view these tokens as digital collectibles with potential long-term appeal, critics point out that most memecoins—unlike Bitcoin, Ethereum, and Solana—lack a meaningful use case. The largest memecoin, Dogecoin, maintains a market cap exceeding $50 billion, and others like Shiba Inu, Pepe, and Bonk have built substantial followings, yet their prices can fluctuate wildly due to concentrated ownership and minimal regulation.
Major Cryptos Remain the Backbone of Innovation
In stark contrast to the speculative frenzy surrounding memecoins, Bitcoin, Ethereum, and Solana continue to demonstrate robust growth and institutional backing. Bitcoin, despite trading below $82,000—down about 13% this year—benefits from its fixed supply and growing adoption, with some experts predicting it could surpass $1 million by 2030.
Ethereum and Solana are also gaining traction, with increasing numbers of projects built on their platforms and growing real-world use cases. Meanwhile, the memecoin market remains largely unregulated, making it susceptible to scams and rug pulls, which further amplify investor risks. As the regulatory landscape for major cryptocurrencies becomes clearer, institutional investors are expected to drive sustainable growth in the sector, leaving the volatile memecoin market behind.
Recently we wrote, that recent weeks have seen a significant migration of meme token activity from Solana to BNB Chain and PancakeSwap, with traders seeking more sustainable markets amid recent volatility.
