Dubai Crypto Fund Sells Bitcoin to Bet on Cardano, Polkadot

FD7 Ventures, a Dubai-based crypto investment fund, today said it plans to unload $750 million worth of their Bitcoin holdings over the next 30 days to buy two altcoins, Cardano (ADA) and Polkadot (DOT).

The move will reportedly better serve the needs of FD7 investors who are looking to diversify their portfolios in the cryptocurrency space. While Bitcoin presents stronger long-term opportunities, the popular cryptocurrency has become a relatively mature asset. That’s why alternative successful coins have captured investor interest.

FD7 Ventures is sitting on $1 billion in Bitcoin under management, which means the fund is swapping 75% of its current assets. Instead, the fund is betting on the future of ADA and DOT, which have a combined market cap of nearly $65 billion. This compares with the value of all Bitcoin in circulation which recently crossed the $1 trillion milestone.

Excitement around the two tokens was apparent in the cryptosphere over the last few days. Polkadot price hit an all-time peak earlier this week ahead of its upcoming parachain auctions which will allow its network to connect with other established blockchains like Bitcoin and Ethereum.

FD7 Expects ADA and DOT to Outperform Bitcoin

There’s a lot to watch out on the horizon for the Cardano (ADA) as well. The token has been trading in a robust uptrend for the past few months as its upcoming update will allow users to create tokens from scratch on top of the Cardano blockchain. The protocol update will require a hard fork that was scheduled to the mainnet on March 1.

“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. Projects such as Cardano, Polkadot and Ethereum are the foundation of the new internet and Web 3.0,” Says Prakash Chand, Managing Director at FD7 Ventures.

FD7 Ventures said it has already begun the process of converting their Bitcoin to Cardano and Polkadot and expects to complete the conversion transactions by in March.

“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,” added Chand.

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