February 26, 2021
Bitcoin suffered a setback this week. Despite high profile purchases by Michael Saylor [MicroStrategy] and Elon Musk [Tesla] for their respective companies balance sheets, not everyone shares a similar appetite for the world’s leading cryptocurrency.
Case in point — Dubai based investment fund FD7 Ventures announced to the world this week that it plans to sell off $750 million of its Bitcoin holdings over the next month.
And where is that cash headed? Straight into Cardano and Polkadot, two of the top contenders for Ethereum’s crown.
Both Cardano and Polkadot have built 3rd generation blockchains that tackle issues such as scalability and interoperability. In short, they are signaling a new era of faster, agile blockchains that can pull a whole host of cryptocurrencies together cheaper and in a far simpler way for developers.
Charles Hoskinson, the co-founder of Cardano, not known for his shy demeanour, immediately jumped on Twitter, heralding the news.
“Welcome FD7 Ventures to the [Cardano] ecosystem…..Let us know if you need any technical support.”
His tweet generated over 3,000 shares within the Cardano community, overjoyed at this investment into ADA, their native token.
FD7 Managing Director, Prakash Chand was glowing in his admiration for Cardano and Polkadot, stating:
“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.”
While the Bitcoin share price has faltered significantly this week, Cardano is looking much stronger up 5% on the week to $1.10. On the other hand, Polkadot has not fared so well, down 15% on the week at $28.47.
As an additional boost to Cardano’s current position as the No 3 coin by market cap came as a result of Binance’s announcement today on a new partnership with will allow Cardano to be purchased directly using the British pound. Binance also stated it was now offering a Polkadot to pound pairing also.
So it seems that Bitcoin is not the only game in town as many investors want a more diverse portfolio. Stay tuned — it should be an interesting ride.