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Cathie Wood Bullish on Solana, Points to Developer Engagement
- Cathie Wood, The Ark Invest founder praised Solana’s resilience after the FTX exchange collapsed and cited its strong developer support.
- Wood credits developer confidence for Solana’s recovery and sees smart contracts and DeFi projects gaining prominence.
- Global Macro Investor CEO advises investors to be wary of FOMO and suggests a long-term HODL strategy is the way to go.
Cathie Wood is a major player in the cryptosphere. Her company, Ark Invest, has created several funds focussing on innovative technology, and holds a substantial amount of Bitcoin (BTC) in its underlying portfolio. A long-time Bitcoin maximalist, Wood has never been a huge proponent of altcoins. However, it appears she may be changing her tune after she presented a bullish case for Solana in a CNBC interview.
“Always Follow the Devs”
Wood provided a glowing report of Solana (SOL), outlining how impressive the project’s turnaround was amid the calamitous collapse of FTX. The SBF-lead crypto exchange was one of the DeFi ecosystem’s biggest supporters, and as billions of dollars were wiped from the industry, it appeared Solana may ultimately shrink back to zero.
But Cathie Wood argued that the brightest developers in the crypto industry refused to allow this to happen, and stuck by the DeFi project thanks to its excellent fundamentals and long-term utility. She states it is because of this belief in Solana that it managed to release the shackles and return back to its three-figure glory.
Smart contracts are going to grow in importance as DeFi grows in momentum…Solana is a critical DeFi project and [I] always follow the devs.
Cathy Wood Has Solana Peaked?
While Wood’s optimism shows that Solana’s surge is starting to impact more of the traditional finance players, some in the community are sceptical about her comments. Several have commented that she’s only making these comments after the coin has already gone up around 15x, while pointing out that developer activity is much higher on other DeFi chains like Cardano and Kusama.
Some also had a little fun with Wood’s statements, comparing her to the crypto version of the infamous Jim Cramer.
Founder and CEO of Global Macro Investor (GMI), Raoul Pal, mirrored these thoughts, albeit with a broader lens.
His point is that a long-term investment plan comprising projects with strong fundamentals will nearly always outperform getting swept up in FOMO and emotional trading. Chopping and changing assets based on the flavour of the week is an easy way to sabotage an otherwise solid portfolio. Pal is suggesting that during a bear cycle – as the crypto world is currently enduring – accumulation should be the name of the game.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
