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After receiving a considerable backlash in the market recently, US President Donald Trump’s meme coin found an unlikely ally: Ark Investment’s CEO Cathie Wood.
In an interview with Bloomberg, Cathie Wood boldly claimed that launching Trump’s meme coin is good for the industry and signals a paradigm shift. Wood claimed its launch was a “meme coin moment” and would help the crypto industry establish its claim as a legitimate digital asset.
She further compared Trump’s meme coin launch to the initial coin offerings (ICO) campaigns for 2017. During this period, thousands of crypto projects raised huge amounts, paving the way for creating popular projects like Chainlink, the EOS network, and Ethereum.
TRUMP Meme Coin: Relying On A ‘Meme-Only’ Utility
President Donald Trump surprised the broader crypto market by launching his official cryptocurrency on the Solana blockchain last January 17th. As expected, the TRUMP token surged immediately after listing and gained plenty of attention when Trump officially took office. Then, the token hit an all-time high of $77 days after its debut in the market.
However, the TRUMP token failed to sustain its impressive price surge and soon dropped massively. The token is currently trading at around $17, putting into question the asset’s use cases.
According to Cathie Wood, the only confirmed use case for this meme coin is its connection with the current US president.
Still A No-Buy For Cathie Wood
Interestingly, Wood issued a few statements about the Trump coin in January. Just days after the coin’s launch, Wood said the project lacked a real-world use case and that she’s staying away from meme coins.
Today, Wood sings a different tune and sees potential value for the TRUMP coin. In the same Bloomberg interview, she shared one rumor that holders will be allowed to meet President Trump. However, Wood’s statement remains unconfirmed and just pure speculation.
Wood, Ark Investment Focused On Top Cryptos
Although Wood appreciated the role of the TRUMP token in ushering in a new era for crypto, she insisted that she would not invest in meme coins. She added that her company has generally avoided meme coins for their lack of use cases.
Instead, Ark Investment is focused on the top cryptocurrencies like Bitcoin. In addition to Bitcoin, Wood is looking at Solana and Ethereum for their role in DeFi projects and smart contracts, which will have plenty of use cases in the future.
Featured image from Protos, chart from TradingView
