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A recent announcement on the HBAR Foundation was widely misinterpreted and has sparked confusion among crypto influencers and increased the price of the HBAR token significantly.
A BlackRock money market fund has been tokenized on the Hedera blockchain, leading to a 96% increase in the price of the HBAR token in the last 24 hours. Many of the users believed that the world’s largest asset manager was actively involved, but they were only aware of the move on-chain.
What Happened?
On April 23, HBAR Foundation shared an X post, which was misinterpreted. In this post, an organization working with the Hedera community shared that the blockchain trading and infrastructure firms Archax and Ownera tokenized BlackRock’s ICS US Treasury Fund on its network.
The video that was shared with the announcement seemed to suggest that Ownera, Archax and BlackRock partnered for the venture and that the HBAR Foundation claimed that it would bring the largest asset manager in the world on-chain.
Some of the crypto influencers with large X followers shared a misinterpretation of the post, which had received more than 1.6 Million views and 2,700 reposts within a few hours. Per the misinterpretation, BlackRock was responsible for the $22.3 Billion fund’s move onto the blockchain or had partnered with Archaz and Ownera.
Chris O’Connor, Cardano Ghost Fund DAO founder, initially believed that BlackRock had nothing to do with Hedera’s development and slammed the HBAR Foundation for the way it made the announcement.
The announcement stated,
“What did happen was a HBAR project through the secondary market tokenized shares of a BlackRock fund. Much like I can buy a Rolex take a pic and post it on my X account. Doesn’t mean Rolex ‘partnered’ with me.”
Graham Rodford, CEO and Archax co-founder replied to O’Connor, stating, “it was indeed an Archax choice to put [BlackRocks fund] on Hedera” and added that “everyone involved was aware.”
HBAR Rallied by 96%
HBAR shot up 96% to $0.175 as per the data from Coingecko. However, the price further fell to $0.12.
Even after getting the price to almost double, it is approximately lower than the all-time high recorded in September 2021, a price of $0.57.
The announcement was released as the Hedera Global Governing Council, which oversees the Hedera network. It recently approved the allocation of 4.86 Billion HBAR, valued at $408 Million at the time for further network development.
The funds are part of the HBAR Foundation’s objective to increase its user base in 2024, following 2023’s performance. The foundation claimed that more than 33 Billion transactions are processed on the network.
Recent Developments on the News
The spike in prices was not completely the result of a misinterpretation of the announcement.
Look at these absolute idiots tryna FUD $HBAR with my post 😂👏🏽
— MASON VERSLUIS (@MasonVersluis) April 24, 2024
CoinTelegraph yall desperate as shit.
GTFO with your constant hating.
Yes it’s a LAYERED connection between Blackrock & HBAR.
But it’s been confirmed Blackrock was AWARE of this and signed off on the PR. https://t.co/U6H8i1TGsX
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
