A Dubai-based investment fund with a reported $1 billion in assets under management is selling off its Bitcoin (BTC) holdings in order to buy Cardano (ADA) and Polkadot (DOT).
FD7 Ventures announced plans to sell off $750 million worth of its Bitcoin holdings on Feb. 25. The sell-off will take place over the next 30 days, and the funds will be used to increase the firm’s holdings of popular top-10 altcoins, Cardano and Polkadot.
The company’s decision to erase a majority of its current Bitcoin holdings from its books is motivated by a need to diversify the portfolios of FD7 investors, the firm said in a press release.
Managing Director of FD7, Prakash Chand, said Cardano and Polkadot (as well as Ethereum) represented the next evolution of the internet, calling them the “foundation of Web 3.0.” But according to Chand, Bitcoin itself is “pretty useless.” Chand said:
“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 (ETH) are the foundation of the new internet and Web 3.0.”
The press release talks up the credentials of Gavin Wood and Charles Hoskinson, the respective creators of Polkadot and Cardano. Both men were part of the original team that founded Ethereum in 2015.
Chand sees both Polkadot and Cardano becoming more valuable than Bitcoin in years to come. Chand said:
“I’ve been lucky enough to spend lots time (sic) 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.”
The process of converting its Bitcoin into the two altcoins will be done gradually by FD7, and is expected to be completed by mid-March.