A Dubai fund to sell $ 750 million in Bitcoin to buy Cardano and Polkadot
Dubai-based crypto fund FD7 Ventures to sell over $ 750 million worth of Bitcoin next month to buy Cardano Y Polkadot said in a release Thursday. Both blockchains are high-speed networks that can support the implementation of low-cost smart contracts and provide scalability to new developers.
The fund claims to have more than $ 1 billion in net assets, most of it in Bitcoin. However, its executives say the asset has served its purpose and that the newer blockchains are a better bet. “Apart from the fact that Bitcoin was the first to be traded and society has given it a meaning as a store of value, I think Bitcoin it's actually pretty useless, ”Prakash Chand, managing director of FD7, said in a statement. He added that Ethereum, Cardano, and Polkadot would eventually be more valuable than Bitcoin "in the next few years."
Chand said the two projects were the foundation of the "new Internet" and Web3, a term used in recent times to describe the next generation of Internet startups conducting peer-to-peer business without relying on a middleman.
Some examples of these, FD7 said in the statement, were the Cardano's efforts to create a blockchain solution that would address the needs of the unbanked in Africa and Polkadot's continued development of an ecosystem of Web3 projects.
Meanwhile, Cardano founder Charles Hoskinson appeared to congratulate the fund's decision. “Welcome to FD7 Ventures to the ecosystem. Please let us know if you need technical support, ”he tweeted.
FD7 claims to have already started its purchase of ADA and DOT, the native Cardano tokens and Polkadot respectively. In the last 24 hours, the DOT price fell 9%, in line with the rest of the market declining. By contrast, Cardano is challenging the market, up 5%.
