April 17, 2021

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Dubai Crypto Fund Sells $750 Million BTC to Buy More ADA, DOT

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Dubai Crypto Fund Sells $750 Million BTC to Buy More ADA, DOT

Dubai-based FD7 Ventures announced that it would be selling $750 million worth of Bitcoin (BTC) to purchase more Cardano (ADA) and Polkadot (DOT).

With this move, the crypto investment fund would be selling most of the $1 billion under management to invest in the upstart blockchains. Both ADA and DOT are high-speed, low-cost smart contract deployment networks that claim to enable scalability.

BTC Served its Purpose

According to FD7 Managing Director, Prakash Chand, the fund feels as though BTC has ultimately served its purpose, and that diversifying into new altcoins would better serve its investors.

“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,” Chand said. “Projects such as Cardano, Polkadot, and Ethereum (ETH) are the foundation of the new internet and Web 3.0,” he added.

Web3

The founders of both ADA and DOT, Charles Hoskinson and Dr. Gavin Wood, respectively, were both among the seven founders of Ethereum. The announcement cited examples of how their new projects are contributing to the new decentralized Web3.

For instance, ADA is working on a blockchain solution to address the needs of millions of unbanked individuals in Africa. Meanwhile, DOT is developing an ecosystem of “moonshot” projects to enable a decentralized platform for Web3.

Upon hearing of FD7’s intended acquisition, Hoskinson seemed to welcome the news in a tweet.

ETH, ADA, and DOT

Further rationalizing the decision, Chand said,

“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.” 

BeInCrypto reported last week (Feb 15 – 19) that ADA and DOT were being seen as increasingly viable alternatives to Ethereum, as high gas prices have forced users to other platforms. This is increasingly the case not only for smart contracts but also with Decentralized Finance (DeFi).

The post Dubai Crypto Fund Sells $750 Million BTC to Buy More ADA, DOT appeared first on BeInCrypto.

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