TechCrunch founder Michael Arrington announced to launch a $100 million cryptocurrency fund called the ‘Arrington XRP Capital’ on the same day as Bitcoin reached $10,000 for the first time.
The fund is the first of its kind requiring all its limited partners to make investments using Ripple currency ‘XRP’. The cryptocurrency will be used for all distributions and fees.
Arrington broke the news in a blog post and wrote that XRP is a cryptocurrency that mirrors the same wild run that Bitcoin had been on for the past year. The currency powering the RippleNet software inclined from $0.007 to $0.271 over the last year and has a current market cap of $27 billion.
Bitcoin is currently valued at $165 billion while Ethereum at $44.87 billion. Both the cryptocurrencies have seen sharp ups and down over the past year. One day hitting the record high while the next day slumping back before surging again the other day. This unpredictable crypto-behavior sees a series of mixed reactions among the crypto enthusiasts.
“Some people think this is crazy and we’re on the edge of a bubble-bursting meltdown in cryptocurrencies values… Others, however, argue that we’re just getting started in crypto. I’m one of those people,” wrote Arrington.
Arrington said that he and his partners chose cryptocurrency over fiat to attract the larger number of cryptocurrency holders and foreign investors. The team especially selected XRP due to its “super-fast and secure settlement infrastructure” and Arrington believes that XRP by easing pain points will improve the existing cryptocurrency hedge fund model.
Former CEO of TechCrunch, Heather Harde and chief product officer of Whitepages will also be joining Arrington in his new fund. According to Arrington the fund has raised $50 million to date and will likely begin trading before the year ends.
The Arrington XRP Capital will be primarily investing in ICOs as well as cryptocurrencies and might acquire small stakes in blockchain startups too.
The founder and former editor of TechCrunch bought his first Bitcoin in 2013 when the cryptocurrency was priced at $102.41. Since then the world of cryptocurrency has fascinated him so much that he recently announced in his blog post to devote the rest of his life and career to cryptocurrencies. Arrington has so far invested 10 percent of his wealth into cryptocurrency (excluding the XRP fund).
“In the last several months, I’ve gone from crypto enthusiasts to 100 percent crypto. I’ve only been looking at crypto deals. This is what I think I’ll be doing the rest of my career.”