Faith Morrow
In 2017, Michael Arrington announced a $100 million hedge fund denominated in the cryptocurrency XRP, also known as Ripple. This was reported to be the first fund denominated in a cryptocurrency at the time. Since then, Arrington Capital has invested in over 200 early-stage companies within the crypto ecosystem. Arrington's personal investments include Uber, Airbnb, Pinterest, and a $100 million fund for bets on projects building on the Algorand blockchain.
| Characteristics | Values |
|---|---|
| Name | Michael Arrington |
| Date of Birth | 13 March 1970 |
| Education | University of California, Berkeley (freshman year); Claremont McKenna College (economics major); Stanford Law School |
| Career | Co-founder of Achex, Zip.ca, Pool.com, CrunchFund, TechCrunch, and Crunchbase; Chief Operating Officer for Razorgator; Founder of Edgeio; Board of Directors at Foldera; Editor of TechCrunch; Investment Partner at Arrington XRP Capital |
| Investments | Uber, Airbnb, Pinterest, Seed Round-Portal, Seed Round-QED Protocol, Pre Seed Round-Drosera, Seed Round-Delegate, Pre Seed Round-bbox, Seed Round-Tanssi Network, Seed Round-Aperture Finance, Venture Round-Pocket Network |
| Crypto Fund | Arrington XRP Capital, a $100 million crypto hedge fund denominated in XRP (Ripple) |
| NFT Venture | Sold his Kyiv apartment as the first real estate-backed non-fungible token (NFT) |
What You'll Learn
Michael Arrington's $100 million crypto hedge fund
Michael Arrington, the founder and former editor-in-chief of TechCrunch, announced the launch of his new $100 million XRP capital fund on stage at Consensus Invest in 2017. The fund, titled Arrington XRP Capital, is one of the world's largest crypto hedge funds and is entirely denominated in XRP.
Arrington's decision to solely use XRP to power his capital fund further validates that this digital currency provides the best use case for real-time, transparent, and secure transactions. XRP provides much-needed liquidity for cross-border payments and is the fastest, most scalable, and stable digital asset on the charts, making it the most appropriate for institutional use.
Arrington XRP Capital will use the fund to buy and hold currencies, partake in token sales, and invest a small amount in equity and debt. Arrington stipulates that all limited partners must make their investment using Ripple (XRP), and Arrington XRP Capital will use XRP to pay all distributions and fees.
This signals Arrington's next career move after founding TechCrunch, a leading internet media outlet, in 2005. The new investment pot builds upon his similar experience with CrunchFund, an early-stage venture capital firm headquartered in San Francisco.
Arrington is bullish about the future of the crypto market, stating that the crypto revolution is still in its infancy. He plans to work with wealthy investors holding crypto assets rather than new money in the market, signalling that this is a long-term investment in the potential of blockchain technology.
Arrington XRP Capital aims to make cryptocurrency hedge fund investments quicker and more fluid, addressing some current pain points in the market. Using Ripple reduces the clunkiness of fiat payments thanks to lightning-fast transaction times. However, cryptocurrency market volatility remains an issue for anyone using payment features rather than a store of value, and this is a hurdle that Arrington XRP Capital will also need to overcome.
The fund has a unique structure, with all investments and distributions made in XRP, and it promotes diversification in a market reliant on Bitcoin and Ethereum.
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Arrington XRP Capital
Michael Arrington has a history of entrepreneurial endeavours, including co-founding Zip.ca, Pool.com, and Achex, an internet payments company that was sold to First Data Corp for US$32 million. In 2011, Arrington founded a venture capital firm called CrunchFund, which invested in companies like Uber, Airbnb, and Pinterest, and BlueFly. In 2017, Arrington announced he was starting a $100 million hedge fund denominated in the cryptocurrency XRP, also known as Ripple. This fund has invested in more than 50 crypto startups.
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Arrington Capital
Michael Arrington, the founder of Arrington Capital, is a prominent figure in the tech industry. He is the co-founder of TechCrunch, a well-known blog covering Silicon Valley technology startups and the wider technology field. In 2017, Arrington announced that he was shifting his focus to become a full-time crypto investor and founded Arrington XRP Capital.
Arrington XRP Capital has made various investments in the crypto space, including in tokens and equity investments. The firm has also launched funds focused on specific blockchain technologies, such as the $100 million Algorand Ecosystem Fund. Arrington has participated in several events and conferences related to cryptocurrency and blockchain, including the World Crypto Economic Forum and TechCrunch Disrupt.
In addition to his work in cryptocurrency, Arrington has a background in law and entrepreneurship. He practised securities law at prominent firms and co-founded several companies, including Achex, an internet payments company, and CrunchFund, a venture capital firm. Arrington has also been recognised by magazines such as Wired and Forbes as one of the most powerful people on the Internet.
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TechCrunch
Michael Arrington, the co-founder of TechCrunch, has been an active investor in the cryptocurrency and blockchain space since 2017. In November 2017, Arrington announced the launch of a $100 million hedge fund denominated in the cryptocurrency XRP, also known as Ripple. This fund, known as Arrington XRP Capital, was reported to be the first of its kind, with its value tied to a cryptocurrency rather than traditional fiat currencies.
Arrington's interest in cryptocurrency stems from his desire to reinvent himself and explore new areas. In an interview, he stated that he enjoys trying new things and believes others should embrace reinvention as well. This mindset led him to establish Arrington Capital, a firm dedicated to investing in digital assets and Web3. Since its inception, Arrington Capital has invested in over 200 early-stage companies within the crypto ecosystem.
Arrington's crypto investments have had their ups and downs. In 2018, his fund lost a significant portion of its value as the broader crypto market collapsed, but he managed to beat the market. He has also had some successful exits, such as investing in BlueFly, an online retailer that was later bought by affiliates of Clearlake Capital for US$13 million.
In addition to his crypto-focused hedge fund, Arrington has also raised other funds in the space. In 2021, he announced the launch of a $100 million fund for projects building on the Algorand blockchain. Arrington has also made personal investments in various startups, including Uber, Airbnb, and Pinterest.
Arrington's involvement in the crypto space extends beyond investing. He has co-founded a crypto lending startup and sold his Kyiv apartment as the first real estate-backed non-fungible token (NFT) on the blockchain platform Propy. Arrington's expertise and interest in cryptocurrency have led him to attend and speak at various industry events, including the World Crypto Economic Forum and TechCrunch Disrupt.
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CrunchFund
Michael Arrington is an American entrepreneur and investor. He founded TechCrunch, a blog covering Silicon Valley technology startups and the wider technology field. In 2011, Arrington co-founded CrunchFund, a venture capital firm, alongside M. G. Siegler and Patrick Gallagher. CrunchFund was an early-stage, sector-agnostic venture capital firm based in San Francisco. The firm raised its inaugural fund in September 2011, with investors including AOL, Accel Partners, Austin Ventures, Kleiner Perkins Caufield & Byers, and Greylock Partners, among others.
Michael Arrington has also made personal investments in several companies through Arrington XRP Capital. These investments include QED Protocol, Drosera, Delegate, and Tanssi Network, among others. Arrington XRP Capital is a thesis-driven firm dedicated to investing in digital assets and Web3.
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Frequently asked questions
Michael Arrington has invested in several cryptocurrencies and crypto startups through his $100 million hedge fund, Arrington XRP Capital. The fund, which was launched in 2017, is denominated in the cryptocurrency XRP, also known as Ripple. Arrington XRP Capital has invested in over 50 crypto startups, with a focus on early-stage companies within the crypto ecosystem.
Michael Arrington is the American founder and former co-editor of TechCrunch, a popular blog covering Silicon Valley startups and technology news. He has also co-founded several companies, including Achex, an internet payments company, and CrunchFund, a venture capital firm. Arrington has been named one of the most influential people in the world by TIME Magazine and is known for his entrepreneurial endeavours and investments in tech and crypto.
Michael Arrington decided to shift his focus to cryptocurrency investing in 2017, citing his interest in reinvention and exploration. He has stated that he enjoys trying new things and believes that people should not become stagnant in their careers. Arrington also identifies as a libertarian, and the decentralised and anti-statist nature of cryptocurrencies like Bitcoin aligns with his worldview.
