A lot of exciting things are happening in the world of Ripple and XRP. A few days ago, this digital asset overtook Ethereum in market cap. Moreover, the XRP price has risen to over $2.75, which was to be expected. More good things are on the horizon as well. Michael Arrington confirmed the $100m XRP hedge fund is live and trading. This will bring even more mainstream exposure to Ripple and its native asset. Things are finally falling into place for this popular asset, which is a positive sign.
Many people were surprised when Michael Arrington announced his hedge fund plan. Launching a $100m fund solely for XRP seemed like a strange decision at the time. Known as Arrington Capital, the hedge fund is now live and trading on the open market. It will be interesting to see how this will impact the future of Ripple and its native asset over time The choice for this asset is still pretty interesting. After all, most similar projects focus on actual cryptocurrencies, rather than digital assets.
Michael Arrington may be Onto Something
The implication of this hedge fund should not be overlooked whatsoever. Michael Arrington explained how it will use XRP for all actions and transactions. Even the trading and payroll payouts will occur solely in XRP. This means the digital asset will benefit from increased mainstream exposure moving forward. Additionally, Ripple’s native asset makes a lot more sense to mainstream investors than cryptocurrencies do. Whether or not that is a good thing, remains to be determined.
The big question is whether or not this project will pay off. Given XRP’s recent value appreciation, it seems to have been the right call. It is still far too early to say for sure, though. Nothing is set in stone when it comes to cryptocurrencies and digital assets. Things can always change in the blink of an eye. Arrington XRP Capital will certainly be interesting to keep an eye on moving forward. Assuming the cryptocurrency and digital asset market is in a bubble, it may very well collapse soon. However, it seems highly unlikely this is a bubble, for the time being.
For all we know, this hedge fund may not impact the XRP price at all. It’s always difficult to gauge any potential impact when such products only just launched. The Bitcoin futures have not made any impact either so far. It is always best to revisit such topics after six or twelve months before making any assessments. It’s good to see XRP is getting some major attention in this regard. Michael Arrington may be onto something with this new hedge fund. Only time will tell if that is the case, though.
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