Ark Invest's Cathie Wood Believes Crypto Revolution is Underway and Unstoppable; Bashes Algorithmic Stablecoins

Cathie Wood, CEO of Ark Invest, said the revolution in crypto is underway and unstoppable, when she appeared on CNBC’s Squawk Box on Tuesday. Wood also discussed Ark’s three big ideas for 2022 related to crypto. 

The Florida-based company’s CEO noted that while the market is in a “massive slump” right now, the three revolutions around crypto are underway and unstoppable. Those revolutions are the money, DeFi and NFT revolutions, with the NFT revolution’s future appearing  limitless. 

First, Wood quickly went over the money revolution as Bitcoin, saying it’s the first global, digital, private, rules-based monetary system. With all of those benefits, Bitcoin has still had a rough go in the last few months. It is currently trading at $20,741, according to Bitpush Terminal data. It is currently in the midst of a two-week long consolidation period between $18,000 and $22,000. 

The second revolution Wood described was DeFi (decentralized finance), which she said gained popularity in 2020 and 2021. While she emphasized that the reach for yield and leverage went way too far, she is very impressed with the robust ecosystem and its ability to move past the Terra Luna meltdown.

She also bashed algorithmic stablecoins, saying “as an economist myself, I didn’t understand them, and it makes sense why they’re not going to exist.” The main algorithmic stablecoin that was launched into the public eye was Terra Luna’s stablecoin UST, which depegged from a $1 and went into a downward spiral to virtually zero. The founder of the project, Do Kwon, is being investigated by multiple governments and internet group Anonymous. 

The third revolution and the most potential is the non-fungible token (NFT) revolution, which she described as being in a similar spot as tokens in 2017. Wood doesn’t exactly know where NFTs will end up, but she did suggest that digital property rights as NFTs will be very important, especially for the impoverished world. 

“I know again from my economic background that property rights lift people and countries out of poverty,” Wood said. 

She concluded the interview saying that digital wallets will be “winner take most” or there will be 2 or 3 of them. So Ark Invest is looking at CashApp, Coinbase and Robinhood/FTX. She said that the opportunities for these can be huge. 

The last wallet she mentioned, Robinhood/FTX, raised some eyebrows as there are rumors swirling that FTX is considering buying Robinhood. However, Sam Bankman-Fried, the CEO of FTX, denied such rumors. 

Author: Tyler Irvin

Related Articles