Michael Arrington, the founder of TechCrunch has announced the establishment of a hedge fund worth $100 million which will be denominated in XRP, Ripple’s native token. This announcement was made during Consensus: Invest conference organised in New York wherein it was given the nomenclature of Arrington XRP Capital.
Investors who shall purchase the fund’s shares shall receive equivalent denomination in XRP which is the Fourth largest cryptoccurrency when measured according to market capitalisation and also the native currency form of Ripple Consensus Ledger (RCL). Arrington shared this exciting news over a blog post where he stated that,
“A year ago I was just a crypto enthusiast. Now I’ve altered my career path to focus entirely on cryptocurrencies and related technologies. And this isn’t just a short term focus. With this new fund I’m signaling my intent to spend the rest of my career on cryptocurrencies. There will be dramatic ups and downs along the way, but we’re in this for the long haul.”
The founder of CrunchFund also announced that he has taken a joint decision along with other Arrington XRP Capital founding partners to use cryptocurrencies for denominating the fund in place of the traditional fiat mode. This will make it easier for foreign investors and crypto holders to participate in the same. Financial services heavyweights like American Express have chosen Ripple given its “super-fast and secure settlement infrastructure,” which will also act as a stimulating factor for generic investors weighing out their investment decision.
Arrington added that this feature is going to be an integral component of the operational wing of this fund and not just a mere gimmick. He wrote in his blog that, “We’ll pay our own fees and salaries out in XRP as well. We want to “eat our own dog food” and be active users of crypto currencies in as many parts of our fund operations as possible, not just investors. This will make us better investors.”
Fortune magazine has revealed that the fund has already raised about half of its target $100 million corpus. Although the fund can buy small stakes in the equity of blockchain startups, it will be focussed mostly on initial coin offerings and crypto investment. Such background happenings helped XRP to flash under news headlines and crossing over the $.30 frontier for the first time since last June. The current market cap of XRP tokens is $11.1 billion and it is presently being traded at $0.286.
Also Read: Bill Gates Foundation Uses Ripple’s Interledger Technology
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