Dubai-based crypto investment fund, FD7 Ventures said it has completed the purchase of $380 million worth of Cardano (ADA) tokens using the funds it collected from selling its Bitcoin holdings.
The news comes shortly after the firm launched a micro-fund that will focus on investments in projects building out on Cardano (ADA) and Polkadot (DOT). Additionally, the investment fund opened a new office in Bengaluru, a city widely regarded to be the IT hub of India.
FD7 Ventures, which claims to be sitting on $1 billion in digital assets under management, revealed plans in February to unload $750 million worth of their Bitcoin holdings to buy the two altcoins.
The move is part of the fund’s strategic road map to diversify its portfolio in the cryptocurrency space. While Bitcoin presents stronger long-term opportunities, the popular cryptocurrency has become a relatively mature asset. That is why alternative successful coins have captured investor interest.
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FD7 Expects ADA and DOT to Outperform Bitcoin
The excitement around the two tokens was apparent in the crypto sphere over the last few days. Polkadot price hit an all-time peak last week as network upgrades occurred in early March allow its network to connect with other established blockchains like Bitcoin and Ethereum.
There is a lot to watch out for on the horizon, including Cardano (ADA). The token has been trading in a robust uptrend for the past few months as its upcoming update will allow users to create tokens from scratch on top of the Cardano blockchain.
Prakash Chand, FD7 Managing Partner, says he predicts that ‘the price of Cardano (ADA) and Polkadot (DOT) could rise to approximately 20X within the next 2-3 years.’ According to Chand, his bullish stance on altcoins is based on a belief that institutional money will flow into Cardano, Polkadot and Ethereum at an adoption rate much faster than what has been seen with Bitcoin.