The CEO of ARK Invest has made it clear that she’s not jumping on the Trump coin bandwagon.
In a chat with Bloomberg, she called it a memecoin without any real utility. Instead, her focus remains firmly on Bitcoin, Ethereum, and Solana, the big three of the crypto industry.
Just another memecoin?
So, what’s the deal with Trump coin? Launched right before Donald Trump took office as the 47th president, this token has generated quite a hype.
Wood pointed out that while there’s chatter about potential perks, like maybe meeting Trump if you own the coin, there’s not much else to back it up.
“We don’t know of much utility for this coin,” she said, adding that it’s mostly a meme celebrating Trump himself.
She likened this latest memecoin craze to the ICO frenzy we saw back in 2017, because that movement brought a lot of attention to new technology, she explained.
Even if some traditional crypto folks found it a bit cringe-worthy, it opened doors for many newcomers.
Wild price swings
Just last week, Trump coin experienced 11,000% growth shortly after its launch, and this spike helped boost memecoin trading volumes by 30%, reaching nearly $18 billion in just seven days.
But when asked if she’d invest in it, Wood was quick to decline.
“We’ve pretty much stayed away from memecoins. We’re very focused on the big three.”
Despite her skepticism about Trump coin, Wood is optimistic about the future of DeFi, and believes this movement will be significant and is heavily tied to Ethereum and Solana.
In fact, she’s even predicted that Bitcoin could surpass $1 million by 2030.
Who holds the TRUMP coins?
Chainalysis shared that a mere 40 crypto whales control 94% of both Trump and Melania meme tokens, and these big players hold at least $10 million in either token.
This concentration means that while there are around 790,000 wallets holding Trump coin, most are owned by just a handful of wealthy investors.
Even though these high-value holders dominate the market, Chainalysis noted that the launch of these tokens has drawn in a wave of new crypto users, because nearly half of whom created wallets on the same day they bought their tokens.
