FD7 Ventures, a cryptocurrency investment fund based in Dubai with $1 billion in assets under management, has announced it plans to sell $750 million worth of bitcoin over the next 30 days, so it can increase its positions in Cardano (ADA) and Polkadot (DOT).
According to a press release, the move will see the fund sell most of its bitcoin holdings to bet on DOT and ADA. Polkadot is software looking to incentivize a global network of computers to run a blockchain on top of which users can launch their own blockchains.
Prakash Chand, Managing Director at FD7 Ventures, was quoted saying:
Aside from the fact that Bitcoin was first to market and society has given it meaning as a store of value, I think Bitcoin is actually pretty useless
Polkadot is designed to operate two blockchains. A main network, called a relay chain, and user-created networks called parachains. These parachains can be customized for several uses, while benefitting from the main blockchain’s security.
Cardano, on the other hand, is the world’s first peer-reviewed blockchain. The network was launched after being reviewed from a network of academics and scientists from various universities, including from the University of Edinburgh and the Tokyo Institute of Technology.
Both were created by co-founders of Ethereum, the second-largest cryptocurrency by market capitalization, and support low-cost smart contract deployment. Per Chang, both Charles Hoskin, founder of Cardano, and Gavin Wood, founder of Polkadot, are “considered to be two of the brightest minds working in the crypto development space today.”
The fund cited some of the developments from Cardano and Polkadot as part of the reason for the change. While Cardano is working towards “a blockchain solution to address the needs of millions of unbanked individuals in Africa and other countries,” Polkadot is building out an ecosystem of “moonshot projects” that “enable a fully decentralized platform for Web3 where users are in control.”
I’ve been lucky enough to spend lots time with the brightest minds in crypto and I’m willing to bet that each of Ethereum, Cardano and Polkadot will be more valuable than Bitcoin within the next few years.
Per the press release, FD7 Ventures has already started converting some of its BTC holdings into ADA and DOT, and expects the conversion to be complete by mid-to-end of next month.
Featured image via Unsplash.