Dubai-based crypto fund FD7 Ventures will sell over $750 million worth of Bitcoin in the next month to purchase Cardano and Polkadot instead, it said in a release on Thursday. Both blockchains are high-speed networks that can support low-cost smart contract deployment and provide scalability to new developers.
The fund claims to hold over $1 billion in net assets, with most of that in Bitcoin. However, its executives say the asset has served its purpose and newer blockchains are a better bet. “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,” said Prakash Chand, managing director at FD7, in a statement. He added that Ethereum, Cardano, and Polkadot would eventually be more valuable than Bitcoin “within the next few years”.
Chand said that the two projects were the foundation of the “new internet” and Web3—a term used in recent times to describe the upcoming generation of Internet startups that conduct business in a peer-to-peer manner without relying on a middleman.
Some examples of these, said FD7 in the release, were Cardano’s efforts to create a blockchain solution that addressed the needs of unbanked individuals in Africa and Polkadot’s continual development of an ecosystem of Web3 projects.
Meanwhile, Cardano founder Charles Hoskinson seemed to congratulate the fund’s decision. “Welcome FD7 Ventures to the ecosystem. Let us know if you need any technical support”, he tweeted.
FD7 claims to have already started its purchase of ADA and DOT, the native tokens of Cardano and Polkadot respectively. In the last 24 hours, the price of DOT fell 9%, in line with the rest of the falling market. In contrast, Cardano is defying the market, up 4%.