Cathie Wood, founder and CEO of investment management company ARK Invest, has reiterated her bullish stance on cryptocurrencies despite the recent market downturn sparked by the Terra UST/LUNA crash.
In a CNBC interview on Tuesday, the Ark Invest global chairman stated that the “money revolution around cryptocurrency will not be stopped.”
Wood noted that ARK believes that the three revolutions around crypto outlined in its “2022 Big Ideas,” which consist of blockchain, decentralized finance (DeFi), and non-fungible tokens, are “underway and will not be stopped.”
Ark Invest Impressed With DeFi Ecosystem
Speaking about decentralized finance, Wood stated that her company is “impressed at how robust the ecosystem has been.” She said many people expected to see a systematic chain reaction after the Terra crash.
Although it happened, Ethereum, the home of DeFi applications, has been able to hold just fine after the meltdown of the LUNA protocol, she said.
The DeFi market value is currently around $44.90 billion, according to CoinMarketCap data. The sector was valued at $150 billion towards the end of 2021 and started 2022 with $141 billion before the unstable market conditions.
NFTs Are Still in Its Early Stages
Commenting on the third revolution in ARK’s “2022 Big Ideas,” Wood noted that the digital property rights, represented by non-fungible tokens (NFTs), will become significant in the future. She highlighted that the “token revolution” surrounding NFTs is still at its infancy.
NFTs are tokenized assets that come in the form of drawings, music, games, wearables, and avatars, representing unique ownership of an item.
The ARK CEO stated that the company believes the digital artwork’s opportunities will be massive, and the firm is prepared to benefit from the various options the assets will present.
Wood noted that her economic background had taught her that digital properties could liberate people and countries from poverty.
“We’re believers, and we think the ecosystem, if it consolidates, is not bad. We do think that digital wallets are going to be one of the most important outcomes here. They are effectively bank branches in our pockets. These are going to be huge opportunities,” she said.
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