Michael Arrington, the founder of TechCrunch, has announced the creation of a 100 million dollars hedge fund, which will be designated in XRP, Ripple’s native symbol.
Arrington made the statement at the Consensus: Invest conference in New York, pointing out that the fund would be called Arrington XRP Capital. Significantly, investors will buy fund shares and receive allocations in XRP, the native currency of the Ripple Consensus Ledger (RCL) and the fourth most significant cryptocurrency per-market cap.
One year ago, I was just a crypto-enthusiast, Arrington wrote in a blog post that attended the announcement. Now I’ve changed my profession path to focus entirely on cryptocurrencies and associated technologies. And this is not just a short-term focus. With this new background, I imply my intention to spend the rest of my career on cryptocurrencies. There will be dramatic shocks and downsides along the way, but we are on this journey.
The founder of CrunchFund wrote that he and the other founding partners of Arrington XRP Capital chose to name the fund in cryptocurrency sooner than fiat to promote the participation of cryptocurrency owners and foreign investors to the fund. They picked XRP due to the super fast and secure settlement foundation, which was also chosen by financial services giants such as American Express.
Arrington said that this feature is not just a trick, it will be an integral element of fund operations:
We will pay your commissions and salaries in XRP. We want to “eat our dog food” and be active users of crypto-currencies in as many parts of our fund performances as possible, not just investors. This will make us better investors!
According to Fortune, the fund – which has brought about half of its100 million dollars target, will primarily invest in Cryptocurrency and Initial Currencies (ICO), although it can get small stakes in startup groups.
XRP traded the news, first lowering the 0.30 USD barrier for the first time in June. Currently, XRP is sold at 0.286 USD, which represents a 0.06% increase of 24 hours and gives the market a ceiling of 11.1 billion dollars.