Should crypto projects follow public companies in buying BTC reserves?

[Vincom]

Lately, I've noticed a trend where some crypto projects, like Cardano and Polkadot, are proposing to build their own strategic Bitcoin reserve funds ^1,2. It seems like less successful projects are trying to mimic public companies by converting some of their native tokens into BTC reserves.

To me, crypto projects are inherently about innovation and developing solutions for the blockchain market's future. They're not just tools to accumulate or invest in BTC. Their core purpose is to build and grow! I recall that Cardano actually raised over 60M USD worth of BTC during its 2017 ICO ³. That BTC was then sold off to cover operational costs for developing their current platform. So, the idea of accumulating BTC again strikes me as a bit odd. It makes me question their long-term vision and whether they've strayed from their original purpose.

Let's not forget the case of BlockOne. They became well-known for accumulating a large amount of BTC instead of focusing on their own EOS token. We all saw how Eos struggled and almost vanished from the market. This is definitely a cautionary tale about what happens when a development team shifts its focus to BTC instead of nurturing its own ecosystem.

Finally, I'm genuinely concerned that deciding to build such a BTC reserve fund could make a project's community doubt its potential and true goals. It might signal a lack of confidence in their native token and their own mission. This could potentially trigger a sell-off of their native token, plunging the project into crisis even before it officially fails and disappears.

I'd like to get your thoughts on this:

• Should crypto projects build BTC reserve funds, or should they focus all their resources on developing their own ecosystems and solutions?
• Will ADA & DOT prices be supported if they have BTC reserve funds?
• Are you planning to buy ADA and DOT? Or will you sell them from your account?

References:
1. Cardano Eyes Bitcoin for Its $1.2B Treasury, Charles Hoskinson Floats $100M BTC Bet
2. Polkadot Members Rally Around Strategic Bitcoin Reserve Proposal
3. Cardano (ADA) ICO

[EarnOnVictor]

Lately, I've noticed a trend where some crypto projects, like Cardano and Polkadot, are proposing to build their own strategic Bitcoin reserve funds ^1,2. It seems like less successful projects are trying to mimic public companies by converting some of their native tokens into BTC reserves.

This "strategic reserve" they are using is only a copycat after Trump's announcement. It changes nothing.

You may hardly see them announcing it, but I tell you, all those brains behind crypto projects have their stash of Bitcoin somewhere, and of course, many will not disclose it for one reason or another.

It could be for a backup or something else, because unless they deceive themselves, they know that Bitcoin is superior to whatever project they created.

[Free Market Capitalist]

For me there is no point in voting. What each company does is a matter of its shareholders. I personally think that buying bitcoin for your reserves, whether you are an individual or any kind of company, has many advantages, especially if you are going to do it in the long term and you are in a clear regulatory environment and you can get financing without selling them.

[AVE5]

Finally, I'm genuinely concerned that deciding to build such a BTC reserve fund could make a project's community doubt its potential and true goals. It might signal a lack of confidence in their native token and their own mission. This could potentially trigger a sell-off of their native token, plunging the project into crisis even before it officially fails and disappears.

That's just the language that says "Don't put the whole of your eggs in one basket". So I wouldn't say they're not confident with their own coin projects rather they're diversifying their investments in the crypto market.
Don't feel doubt that these token developers are highily bitcoin enthusiasts who had formally accepted bitcoin for what it's as a whole and had technically studied the bitcoin blockchain and were able to adapt that creative urge of developing related coins alike bitcoin even though they haven't been successful to invent one that'd posses as bitcoin.

What I'm saying in essence here's that bitcoin got every other coins developers inspired and on before they undergoes the journey of developing their own crypto coins, they've been Investing and technically studying the bitcoin in an overview.
So they aren't likely anti bitcoineers and don't be surprised, those critics criticizing bitcoin may have got portfolios in the bitcoin blockchain but won't say it out.
If the governments and those big global companies can accept and have their funds reserve on bitcoin, who's the common one that's only developing mimicking projects not to invest on the bitcoin the greatest of all?

So I don't find coin developers strange if learn they've portfolios on bitcoin. Of course the decentralized industry is focused on financial freedom so anyone learned with digital technology won't even resist bitcoin.

[Charles-Tim]

Should crypto projects build BTC reserve funds, or should they focus all their resources on developing their own ecosystems and solutions?

Why not? They are all shit coins after all. Probably the developers know that already and trying something different that can help.

Will ADA & DOT prices be supported if they have BTC reserve funds?

I do not think there is any problem except the project is becoming a dead project. USDT company bought bitcoin and went into bitcoin mining and still USDT is leading in stable coins.

Are you planning to buy ADA and DOT? Or will you sell them from your account?

If their prices fall significantly, I can give it a try and gamble with both.

[Maslate]

If a project truly believes that what they’re promoting is an alternative to Bitcoin and that it's less superior, then it would make sense for them to consider buying Bitcoin themselves. After all, most altcoin projects are funded through crowdfunding, so if they plan to use some of those funds to buy Bitcoin, that should be clearly stated in the whitepaper.

Alternatively, if they decide to buy Bitcoin later on as part of their reserves after they’ve achieved some success, I think most supporters would be fine with that. It would actually help strengthen the overall crypto space.

Think about it, if even traditional fintech companies that didn’t start with crypto are now buying Bitcoin, then why shouldn’t altcoin projects do the same?

[Hanadawa]

Alternatively, if they decide to buy Bitcoin later on as part of their reserves after they’ve achieved some success, I think most supporters would be fine with that. It would actually help strengthen the overall crypto space.
Think about it, if even traditional fintech companies that didn’t start with crypto are now buying Bitcoin, then why shouldn’t altcoin projects do the same?

I don’t really understand how a project’s team works behind the scenes. But overall I also think buying bitcoin reserves can be good or bad depending on how the project creates their roadmap. First they raise funds through ICO, then they develop the utility of their project. And when their project is successful they will use a little bit of the project’s profit to accumulate Bitcoin but they still give their focus to continue developing their project. If ADA or Polkadot do buy Bitcoin reserves I think I will still buy ADA and DOT. They already have a good reputation and the development team can buy Bitcoin as a backup for their project. It’s not that they don’t believe in their own project. But it’s just like traditional financial companies or institutions that buy Bitcoin as one of their asset hedges.

[Alpen]

Lately, I've noticed a trend where some crypto projects, like Cardano and Polkadot, are proposing to build their own strategic Bitcoin reserve funds ^1,2. It seems like less successful projects are trying to mimic public companies by converting some of their native tokens into BTC reserves.

To me, crypto projects are inherently about innovation and developing solutions for the blockchain market's future. They're not just tools to accumulate or invest in BTC. Their core purpose is to build and grow! I recall that Cardano actually raised over 60M USD worth of BTC during its 2017 ICO ³. That BTC was then sold off to cover operational costs for developing their current platform. So, the idea of accumulating BTC again strikes me as a bit odd. It makes me question their long-term vision and whether they've strayed from their original purpose.

Let's not forget the case of BlockOne. They became well-known for accumulating a large amount of BTC instead of focusing on their own EOS token. We all saw how Eos struggled and almost vanished from the market. This is definitely a cautionary tale about what happens when a development team shifts its focus to BTC instead of nurturing its own ecosystem.

Finally, I'm genuinely concerned that deciding to build such a BTC reserve fund could make a project's community doubt its potential and true goals. It might signal a lack of confidence in their native token and their own mission. This could potentially trigger a sell-off of their native token, plunging the project into crisis even before it officially fails and disappears.

I'd like to get your thoughts on this:

• Should crypto projects build BTC reserve funds, or should they focus all their resources on developing their own ecosystems and solutions?
• Will ADA & DOT prices be supported if they have BTC reserve funds?
• Are you planning to buy ADA and DOT? Or will you sell them from your account?

References:
1. Cardano Eyes Bitcoin for Its $1.2B Treasury, Charles Hoskinson Floats $100M BTC Bet
2. Polkadot Members Rally Around Strategic Bitcoin Reserve Proposal
3. Cardano (ADA) ICO

Well, OP, as you pointed out, a lot of projects were accumulating BTC during their ICOs. Back then, as now, those funds were quickly converted into dollars because the dollar is the key currency in the market.
The goal of crypto projects is to attract investor funds during the early development phase and generate profit once they're operating smoothly. Spending earnings on Bitcoin, which could lose 80% of its value at any time, isn't something any investor would tolerate.
That said, Polkadot could really benefit from a BTC reserve. DOT has dropped 95% and is now just another token with little value.

[MArsland]

Guess whether you like it or not the developers who create their own coins basically have more confidence in bitcoin than the coins they create themselves. I guarantee that the percentage of their confidence in Bitcoin is 100% but the coins they develop themselves will not be 100% this proves that from the beginning bitcoin will always be the winner.

[Cryptohygenic]

Lately, I've noticed a trend where some crypto projects, like Cardano and Polkadot, are proposing to build their own strategic Bitcoin reserve funds ^1,2. It seems like less successful projects are trying to mimic public companies by converting some of their native tokens into BTC reserves.

This "strategic reserve" they are using is only a copycat after Trump's announcement. It changes nothing.

You may hardly see them announcing it, but I tell you, all those brains behind crypto projects have their stash of Bitcoin somewhere, and of course, many will not disclose it for one reason or another.

It could be for a backup or something else, because unless they deceive themselves, they know that Bitcoin is superior to whatever project they created.

The bitcoin market neither does not restrict anyone from buying instead, it is an open source so that diversities of individuals and institutional adoptors with their strong portfolio values can as well significantly support the market to be sustainable regardless it is a volatile asset.
With with a microscopic insight, every other crypto project developers are enthusiasts to bitcoin and that is where they derives those crypto ambitions.

[cryptoaddictchie]

Well its a good basis of reserved actually since its the safest asset in crypto. We all know BTC wouldnt collapse and choosing it as strategic reserved is wise enough for every crypto project there especially those exchange project.

As far as I know theres a lot who do this like Binance Bybit and many more. If other projects or protocols will follow btc will stay on the upside.

[peter0425]

• Should crypto projects build BTC reserve funds, or should they focus all their resources on developing their own ecosystems and solutions?

If they have the budget for it. Why not? Some companies may not have the budget allocated for investments but I think it is wise because it may even attract investors into their company. Like Microstrategy attracting investors due to the amount of bitcoin they hold. It can also help them with making profit.

• Will ADA & DOT prices be supported if they have BTC reserve funds?

No. That is not correlated. The prices of a coin does not depend on how much bitcoin the company holds.[/list]

[Josefjix]

I don't see it as a problem for those projects to be buying Bitcoin as reserve, already, it is a form of backup investment strategy that can sustain the stability of their own company incase of any crisis that may happen in future. One of the major changes that do occur in those projects are mainly change of chain, if it happens that ADA and Polkadot chains are not reaching it's target, they can equally change and deflect to another chain and that could cost lots of funds.

[fikrett]

I don't see it as a problem for those projects to be buying Bitcoin as reserve, already, it is a form of backup investment strategy that can sustain the stability of their own company incase of any crisis that may happen in future. One of the major changes that do occur in those projects are mainly change of chain, if it happens that ADA and Polkadot chains are not reaching it's target, they can equally change and deflect to another chain and that could cost lots of funds.

Everybody starts to appreciate BTC more: and it shows!

That's great, because previously, trust was not as big for it, but now, everybody seems to try to get a share of the pie.

[Dave1]

I don't see it as a problem for those projects to be buying Bitcoin as reserve, already, it is a form of backup investment strategy that can sustain the stability of their own company incase of any crisis that may happen in future. One of the major changes that do occur in those projects are mainly change of chain, if it happens that ADA and Polkadot chains are not reaching it's target, they can equally change and deflect to another chain and that could cost lots of funds.

And it's a win for us Bitcoin investors, as we all know that if there are many that will buy Bitcoin then it will drive the price up. So I don't mind other crypto projects investing on it and making it as their reserves.

It also doesn't change anything for them, in fact it might be a good sign for them and maybe their investors are going to appreciate this kind of strategy. At least they have their back up plans in case something went wrong with their project and there are still money to cover for such loses.

[hero_the_bossman]

And it's a win for us Bitcoin investors, as we all know that if there are many that will buy Bitcoin then it will drive the price up. So I don't mind other crypto projects investing on it and making it as their reserves.

It also doesn't change anything for them, in fact it might be a good sign for them and maybe their investors are going to appreciate this kind of strategy. At least they have their back up plans in case something went wrong with their project and there are still money to cover for such loses.

They would just run with the bags intact, imo - but true to the fact that the reserves are the logical continuation for what awaits for BTC in the future, everybody will want to have more and more of it.

[davis196]

Should crypto projects build BTC reserve funds, or should they focus all their resources on developing their own ecosystems and solutions?
Will ADA & DOT prices be supported if they have BTC reserve funds?
Are you planning to buy ADA and DOT? Or will you sell them from your account?

The fact that altcoin/token projects focus on accumulating more BTC shows that most altcoins/tokens are useless and meaningless piece of c**p. I'm not the biggest BTC maximalist out there and I don't hate altcoins, but most of the altcoins are shitcoins.
If you want to discuss altcoins like ADA and DOT maybe you should move this thread to the Altcoin Discussion forum.
The whole idea of altcoins having a BTC reserve to support their price/value shows that altcoins are a more or less useless supplement to the cryptocurrency markets. I thought that altcoins are supposed to compete against BTC, not use BTC as a reserve to support their own prices.

[Frankolala]

Lately, I've noticed a trend where some crypto projects, like Cardano and Polkadot, are proposing to build their own strategic Bitcoin reserve funds ^1,2. It seems like less successful projects are trying to mimic public companies by converting some of their native tokens into BTC reserves.

All the shicoin devs know that bitcoin is king and unique, but they decided to create their own projects in order to scam the public. They don't need to mimic anyone, because they know the truth and choose to be ignorant of it. However, bitcoin is open to everyone to invest in and build their own bitcoin strategy reserve. This will also be an eye opener to those shitcoin lovers that bitcoin is the best since the owner of those projects are also accumulating bitcoin.

[BitGoba]

All well-known crypto project founders and insiders have huge amounts of bitcoin that they bought by selling tokens of their projects. Vitalik Buterin, Justin Sun, Charles Hoskinson, and many others all of them privately hold large amounts of bitcoin. They have earned hundreds of millions of dollars on their crypto projects, so what else can they do with that money but buy bitcoin, since fiat money loses value due to inflation.

Besides bitcoin, many have also invested in other forms of assets such as the S&P 500 index, gold, and real estate. Still, the fact is that there aren’t many safe assets where they can preserve the value of their wealth earned from selling large amounts of crypto tokens and protect themselves from inflation, and bitcoin is currently one of the best such places.

[moneystery]

there is nothing wrong if a crypto project builds their bitcoin reserves.. you can say it as their way of investing in potential assets in the long term. even though they offer blockchain technology or tokens to many people, it does not mean that they doubt what they offer, this is just one business strategy, because the value of bitcoin is very good in the long term, and they see that having bitcoin reserves can help their projects and increase the trust of their investors.

however, this is not something that must be followed by all crypto projects, because each crypto project has different needs and different strategies for their projects. depending on their decision, they can build their own bitcoin reserves or not at all.