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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 saying that they are her contenders to create a crypto wallet that has accelerated the crypto revolution.While it is too early to say the winner, she said there will be 2 or 3 wallets with the market and the winner will get everything.
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.
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 said that she thinks NFTs will be used in many areas in the future and will benefit the economy, poverty and hunger.