Cathie Wood, CEO of ARK Invest, stated that she will not buy the Trump Coin (TRUMP), and called it a useless meme coin, and will continue to focus ARK's investments on Bitcoin, Ethereum, and Solana.
The Trump meme coin was hyped up by Trump himself, but many may not know that Trump was originally a casino tycoon. In addition to his businesses in real estate and entertainment, he also owned a casino called Taj Mahal in Atlantic City, New Jersey, named after the Indian Taj Mahal and modeled after it. It was once a sensation, showing Trump's extreme passion for the gaming and entertainment industry, so it's no surprise that he would hype up NFTs and meme coins.
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ToggleWood will not invest in Trump Coin, will continue to invest in Bitcoin, Ethereum and Solana
In an interview with Bloomberg on January 22, Wood discussed Trump's TRUMP meme coin, which was launched before Trump's tenure as the 47th President of the United States. Wood believes that the Trump Coin will have no utility, and some speculate that owning the Trump meme coin could lead to meeting the former President, but Wood does not believe this meme coin will have any use. She also compared the current Memecoin craze to the Initial Coin Offering (ICO) period in 2017. She believes that the ICO innovation movement in 2017 sparked the curiosity of a new group of people in cryptocurrency technology, and now many people are more interested in understanding more about cryptocurrency technology.
Last week, the TRUMP meme coin soared 490% within hours of its launch, with investors treating the Trump Coin as the new crypto savior.
However, Cathie Wood stated that she will only continue to focus on Bitcoin, Ethereum and Solana, and is optimistic about the future of decentralized finance, as ARK believes that decentralized finance services will be heavily focused on the Ethereum and Solana blockchains. Wood also predicted that the value of Bitcoin will exceed $1 million by 2030.
Whale holders dominate the price of Trump meme coin
According to a report by blockchain analytics firm Chainalysis, the TRUMP meme coin and MELANIA meme coin are controlled by 40 crypto whales, with these whales holding over $10 million or more worth of the meme coins, accounting for 94% of the total supply.
Wallets holding between $1 million to $10 million account for 2.1% of the total holders, while wallets holding $100,000 to $1 million account for 1.7%. About 2.2% of token holders have holdings valued at less than $100,000, highlighting the dominance of high-value holders.
DexScreener data shows that there are 790,000 wallets holding TRUMP coins, and 343,000 wallets holding MELANIA. Although the whale user concentration is high, Chainalysis also pointed out that these meme coins have brought a new wave of users to crypto, with nearly half of the buyers establishing new wallets on the same day they purchased the meme coins.
Trump was once a gaming tycoon, but closed down three casinos
Trump once invested and acquired three casinos in Atlantic City, New Jersey, namely Trump Plaza, Trump Castle, and Trump Taj Mahal. After financing through these three casinos, they eventually went bankrupt and closed down within a few years. This may provide some reference for investors who are considering investing in the Trump Coin. A separate article will be written to introduce how Trump started his casino business and went bankrupt.
Risk Warning
Cryptocurrency investments are highly risky, and their prices may fluctuate dramatically, and you may lose your entire principal. Please carefully evaluate the risks.
