The recent crypto slump may have left many investors shaken in fear, as bad news like major crypto firms falling prey to liquidity crisis and exchanges drastically cutting headcounts continue occupying headlines.
However, the crypto bull Cathie Wood – known for her aggressive bets on “disruptive innovation” – reiterated her confidence in digital assets in the latest interview with CNBC. She stated that the crypto revolution is still underway and can’t be stopped though she believes the US economy is already in recession.
Betting Heavy on Coinbase and Block
Commenting on the already denied rumor of FTX planning to acquire Robinhood, Ark Invest CEO Cathie Wood said the retail-favorite trading app only accounts for roughly 2% of her fund’s position. Instead, she is more bullish on the wobbling exchange giant Coinbase and Jack Dorsey’s Block, as both companies are her top ten holdings.
She backed up her thesis by explaining that they are the major contesters of creating a predominant crypto wallet, which could be a game-changer that boosts the crypto revolution. In her view, the space could be a scenario of either “winner takes most” or two or three wallets owning the whole market. It’s too early to tell who may win the game, she added.
Following the latest downgrade issued by Goldman Sachs, Coinbase (COIN) stocks are 85% below ATH. Similarly, shares of Robinhood and Block are down over 50% YTD amid global equity selloffs. As a result, Wood’s Ark Invest Innovation ETF(ARKK) is badly beaten as well, down nearly 55% YTD.
Praise DeFi, Trash Algorithmic Stablecoins
Regarding the Luna-UST meltdown, Wood said it only had caused a tiny amount of “systemic chain reaction” to the overall DeFi ecosystem, which, she praised, has “held very well” amid the market crash. Yet, the space isn’t absent from issues.
She called extreme high yields given by some DeFi protocols and excessive leverages alarming matters exacerbated during a market pullback. In particular, algorithmic stablecoins are problematic:
“As an economist myself, I didn’t understand them. It make sense to me that they are not going to exisit.”
Bullish on NFTs
Wood also doubled down on the potential of NFTs representing the future of digital property rights. This, speaking from her professional experience as an economist, “could lift countries out of poverty.” NFTs will have numerous utilities in the future, she noted, like offering opportunities for creators to monetize their works.
She compared the ongoing rise of NFTs to the beginning of DeFi when tokens just came around, believing the ecosystem is at a consolidation stage as preparing for the exponential growth ahead.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.