Michael Arrington, the TechCrunch founder, has some pretty fascinating insight on his experience in the cryptosphere.
His hedge fund Arrington XRP Capital currently boasts 35 crypto companies in its portfolio.
The company launched back in 2017 and is denominated in XRP. Investors contribute XRP to the fund instead of fiat currency, and distributions and fees are also paid in XRP as well.
“Ripple – or, in this case, XRP is the actual currency – is a really, really good way to move money,” Arrington told CNBC’s Crypto Trader.
“So we denominate our fund in XRP because it’s a fantastic way to move money across borders very quickly at almost zero cost.”
Arrington praises XRP’s speed and efficiency
He believes that XRPis speed and efficiency are placing the crypto into its very own unique class.
He said that there’s a lot of tribalism in the crypto space and there are also lots of Bitcoin maximalists.
The one thing they all agree on is that they all hate XRP because it’s centralized, says Arrington. He also makes sure to slam these claims saying that none of them are true.
“What it is is a fantastic way to move money, and while the other more decentralized cryptocurrencies sort of finding their way toward becoming more efficient, in the meantime XRP is fantastic. And so from a hedge fund point of view, it’s great to denominate ourselves in XRP,” Arrington said.
Arrington XRP Capital has mostly Bitcoin
Ripple currently owns 60% of the total supply of XRP. Arrington said that his hedge fund is widely diversified, and only 3 – 4% of the fund is currently in XRP.
He believes that the most important thing is to understand the asset.
He claims that the company holds a lot of Bitcoin, more Bitcoin than anyone else and a lot of Ether as well, along with US dollars and sometimes Tether.