Dubai-based crypto-investment fund FD7 Ventures is selling $750 million worth of Bitcoin. It will then use the proceeds to increase positions in Cardano (ADA) and Polkadot (DOT) tokens. FD7 says the switch to the altcoins will help the fund better serve the interests of investors looking to diversify their portfolios.
FD7 Ventures A Crypto-Oriented Investment Fund
FD7 Ventures describes themselves as a crypto-oriented investment fund that “invests in entrepreneurs who stand up an 8th time.” They currently have more than $1 billion in AUM in multiple crypto assets.
Managing director at FD7 Prakash Chand spoke on the move. “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 are the foundation of the new internet and Web 3.0.”
Chand continued on about his lack of belief in Bitcoin. The managing director added he is “willing to bet that each of Ethereum, Cardano and Polkadot will be more valuable than Bitcoin within the next few years.”
Cardano and Polkadot Have Seen Major Price Surges
Both ADA and DOT have seen major surges since the beginning of 2021. DOT recently set a new all-time high of over $41 on February 20. The token’s market cap is just under $27 billion and is the sixth ranked token according to Messari data.
ADA set a new 52-week high on February 25 and has grown more than 500% in 2021. ADA is currently trading at $1.05 with a market cap of $32 billion.
FD7’s moves into Cardano and Polkadot also had to do with the founders of the two coins. Charles Hoskinson and Dr. Gavin Wood were described as “two of the brightest minds working in the crypto development space today.” It also noted that they were two of the minds behind the founding of Ethereum.
For his part, Hoskinson has already responded to the news from his Twitter account. The ADA founder welcomed FD7 into their ecosystem and even offered technical support if needed.