FD7 Ventures will sell $ 750 million worth of Bitcoin (BTC) to invest in Cardano (ADA) and Polkadot (DOT).
CEO says BTC has met its targets and believes there is greater potential in smart contract blockchains.
ADA and DOT solutions will be able to contribute to the decentralized development of Web3.
Dubai-based investment firm FD7 Ventures has announced that it will sell $ 750 million worth of Bitcoin (BTC) to buy more Cardano (ADA) and Polkadot (DOT).
With the move, the cryptocurrency investment fund will sell most of its $ 1 billion in assets under management, $ 750 million in BTC, to invest in the two emerging blockchains. Cardano and Polkadot are high-speed smart contract deployment networks.
Bitcoin would have fulfilled its function
According to FD7 CEO Prakash Chand, the investment fund feels that Bitcoin has finally hit its mark and that diversification into new altcoins would be more profitable for its investors.
“Even though bitcoin was the first asset to come to market and the company made sense of it as an asset reserve, I think BTC is actually pretty useless,” Chand said. „Projects such as Cardano, Polkadot and Ethereum (ETH) are protocols with great potential, and will emerge on Web 3.0“, he added.
The Web 3.0 project
The founders of ADA and DOT , Charles Hoskinson and Dr Gavin Wood, were both among the seven founders of Ethereum. This news is accompanied by examples of how their new projects are contributing to the new decentralized “Web3”.
For example, Cardano is working on a blockchain solution to meet the needs of millions of people without bank accounts in Africa. Meanwhile, the Polkadot is developing an ecosystem of “moonshot” projects to enable a decentralized platform for Web3.
Upon learning of the planned acquisition by FD7, Hoskinson appeared to welcome the news through a tweet.
“I’ve been fortunate enough to spend a lot of time with top cryptocurrency experts , and I’m willing to bet that Ethereum, Cardano, and Polkadot will be more valuable protocols than Bitcoin in the next few years.”
BeInCrypto reported last week (February 15-19) that ADA and DOT networks were seen as increasingly viable alternatives to Ethereum, as high transaction fee prices forced users to turn to other platforms . This is increasingly the case not only for smart contracts, but also with decentralized finance (DeFi).