The founder of the media company known as TechCrunch, Michael Arrington has stated that he wants to raise $100 million for a new hedge fund known as Arrington Capital. The fund will be used to buy and sell assets related to the market. The fund will also help in the involvement of token sales and some equities debt. Arrington stated that his entry into the currency market only marks the next stage of where he wants his career to go. Arrington stated that “In the last several months, I’ve gone from crypto enthusiast to 100 percent crypto.
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I’ve only been looking at crypto deals. This is what I think I’ll be doing the rest of my career.” The fund will likely compel all limited partners or LP to invest in the currency known as Ripple. The cryptocurrency is currently being used to power the software known as RippleNet which comes from a San Francisco based start-up. Arrington stated that the use of Ripple’s token will also help to make the digital currency hedge fund model easier to adopt as they can take investments in the form of fiat currency.
Once they have the funds they can intelligently invest in cryptocurrencies like that of Bitcoin and Ethereum. Arrington state that “We think XRP is a particularly useful currency because of the transaction times. I think it makes a lot of sense to denominate a hedge fund in a cryptocurrency, the only downside is [potential] volatility against fiat.” The model behind hedge funds in the cryptocurrency space is something that has not been fully adopted nor tested, but the hopes are high that this one finds some success. If they do end up executing the idea well, it could show a large amount of potential in the overall market.