Arrington XRP Capital Crypto Fund Surpasses $100M Initial Target And Acquires ByteSize
TechCrunch Founder’s Crypto Fund Surpasses Its Target Of $100 Million
Arrington XRP Capital has received an injection of $30 million USD from one of its largest partners and finally was able to surpass the market of $100 million USD in value, an important milestone that the company was already projecting for a while.
The fund was created by Michael Arrington, the creator of TechCrunch. According to the entrepreneur, the fund “didn’t do particularly great last year, but we did better than the market. And that was a win”.
This, he explains, is what made the investors so confident in the fund. It is hard to grow during a bear market, so even if you do not go so well, you can still pose a victor if you lose less than the others. Now, with this additional investment, the company is set to do better than before and it has been finally able to surpass $100 million USD of funding.
What company gave this $30 million USD, though? We do not know. Since the founder of TechCrunch has announced his fund, he never actually said how are the companies behind the fund, only indicated that Ripple was not one of them, an obvious bet since the company is called Arrington XRP Capital and XRP is also the name of Ripple’s token.
The First Acquisition Of Arrington XRP Capital
With the fresh money, the fund was able to make its first acquisition of another company. The target was ByteSize Capital, another fund based in Australia. The fund was originally founded by the brothers Ninos and Ninor Mansor, which were already partners of Arrington XRP Capital.
According to Ninos Mansor, he appreciated the experience that Arrington and Heather Harde (a partner of the fund) would bring to the table. They have been working together for over a decade and the former owners of the Australian fund seemed to be very content with how the negotiations were handled and the predictions for the future growth of the company.
Coindesk has pointed out that acquiring the other fund would enable Arrington XRP Capital to use something known as a “barbell strategy”. This kind of strategy is designed for uncertain markets just like the crypto one. The idea is to use crypto trading to balance venture investments, so if one area is bad, the other one might be luckier.]
Also, the idea is to be on the green side of the trading market both in bear and bull markets, which can only be made with diversification, which will be a major emphasis of the new fund acquired by the TechCrunch founder.
The Future Of Arrington XRP Capital
According to the fund’s creator, there is a new market being formed right now and this one will look like 2017 neither 2018. It will be a whole new thing. Also, he affirmed that most of the losses of the company happened because after taking their profits, the company put the money back on crypto.
Arrington believes that if the fund was able to simply cash out, they may have not lost so much money last year. They made great deals, according to him, only it did not really matter because they lost almost of all the money soon after when the bear market began.
He has also affirmed that the new acquisition of the Australian fund will help to offset losses like this one. They “didn’t have the DNA” for trading but the Mansor brothers have it and their expertise will help the company with its new strategy.