Fake BlackRock Tokenization Hype Rattles HBAR Price; What Next?
Elena R25 Apr 20242 min read
In a surprising move, Archax and The HBAR Foundation have shaken things up in the world of digital assets. They’ve introduced tokenized shares of a familiar name: BlackRock’s ICS US Treasury Money Market Fund. But is BlackRock really involved?
Read on to find out.
Diverse MMF Options for Stability
CEO Graham Rodford highlights the importance of offering a diverse range of MMFs, while Ownera’s Ami Ben David stresses their distribution through the FinP2P network. Shayne Higdon from The HBAR Foundation sees this initiative as a strong vote of confidence in Hedera’s ecosystem.
The announcement sparked excitement, causing Hedera’s HBAR token to double in value. However, excitement turned to caution when it emerged that BlackRock wasn’t directly involved in the tokenization process, resulting in a 25% dip in HBAR’s value. BlackRock quickly clarified, stating no commercial relationship with Hedera.
Market Turbulence
Following the tokenization, Blackrock released a statement that it has “no commercial relationship” with Hedera Hashgraph (HBAR) and denied choosing Hedera to tokenize its funds. This declaration has caused a major reformation in the token price of HBAR.
The ensuing confusion led to a surge of over 100% in HBAR’s price, with some speculating BlackRock’s involvement. However, BlackRock swiftly dispelled these rumors, issuing a statement refuting any ties to the tokenization effort.
Read more: HBAR’s BlackRock Rollercoaster: 100% Surge, 47% Plunge, What’s Next?
Price Rollercoaster
HBAR’s price initially surged due to confusion over BlackRock’s involvement in tokenizing a fund. Later, it adjusted when it was clarified that BlackRock was not directly involved. Despite this, HBAR remained up 31.3% with trading volume up 2,657%. Hence, it was benefiting from increased trading.
However, as of the latest update, the HBAR price dropped 32.8% in the past 24 hours, from $0.176 to $0.118. Archax CEO Graham Rodford clarified the situation. He stated that while Archax chose to tokenize shares of BlackRock’s money market fund on Hedera, BlackRock was unaware of this decision and not actively involved. He emphasized that Archax has been leading the tokenization project.
Hence, BlackRock’s role was only limited to being informed and providing feedback on the project.
Therefore, Archax and HBAR Foundation’s link-up with BlackRock must have contributed to HBAR’s value at the beginning. However, eventually, it led to a massive price drop due to misconceptions. This exposes the volatile nature of the crypto market. In fact, it also highlights the importance of clear communication in blockchain initiatives.
Read more: Hedera Price Prediction 2024, 2025-2030: Will HBAR Price Rise To $1?
