The price of Hedera’s own token, HBAR, jumped approximately 100% within the last 24 hours. This price increase was caused by the announcement that BlackRock, a well-known American investment firm, plans to tokenize its ICS US Treasury money market fund on the Hedera network.
This announcement caused a significant increase in HBAR‘s price from $0.087 to $0.175 on April 23, alongside a massive trading volume of $1.48 billion, as reported by CoinMarketCap. However, the value of this digital asset has since decreased to $1.396 at present, with a market capitalization of $4.99 billion. The current 24-hour trading volume amounts to $2.69 billion.
A Misconstrued Announcement
After the announcement that BlackRock would not be directly participating in tokenizing its $22.3 billion fund on the Hedera network, the price of HBAR experienced a decline.
On Tuesday, the Hedera Foundation, which manages the network, caused confusion with a post on X (previously known as Twitter). In this post, they revealed that Archax and Ownera, both companies specializing in blockchain trading and infrastructure, had tokenized BlackRock’s ICS US Treasury Fund using the Hedera network.
A video was included with the post, implying a potential collaboration among Ownera, Archax, and BlackRock. HBAR asserted that it could bring BlackRock into the blockchain world.
Today, a significant moment in the history of the RWA (Rockwood Asset Management, assumed from the context of RWA and #RWA) is taking place as BlackRock’s ICS US Treasury money market fund gets tokenized on Hedera using ArchaxEx and OwneraIO. This milestone marks a groundbreaking step in asset management by bringing the world’s largest asset manager into the blockchain era 🌐 🏦
— HBAR Foundation (@HBAR_foundation) April 23, 2024
Despite the misconception, the reporting did not signify that BlackRock had tokenized the Money Market Fund (MMF) in collaboration with Archax and Ownera, as some incorrectly assumed based on the news and subsequent sharing by crypto influencers.
On Wednesday morning, HBAR‘s price jumped 96% due to over 2.1 million people viewing and sharing the video, resulting in a significant increase in interest.
Chris O’Connor Slams Hedera for Misleading People
When people in the cryptocurrency sphere learned about the situation, Chris O’Connor, the head of the Cardano Ghost Fund DAO, spoke out against the Hedera Foundation. He believed they had deceived the public and made it known that BlackRock, the world’s largest asset manager, wasn’t involved in the MMF tokenization. Instead, this was a separate project built on the Hedera blockchain involving tokenized shares of a BlackRock fund through the secondary market.
“On X, O’Connor explained that an HBAR project involved buying tokenized shares of a Blackrock fund through the secondary market. This is similar to owning a Rolex and sharing a picture of it online, but it doesn’t imply that the Rolex company has partnered with you.”
He additionally voiced his annoyance towards supposedly deceptive advertising techniques, which he believed were unfairly boosting the price of HBAR.
“This type of misleading marketing for tokens really irritates me. Laugh out loud, HBAR surged 35% without any significant news. I’m guessing it was the insiders who cashed in during these few days. Be cautious and don’t get taken advantage of.”
Simultaneously, although HBAR has soared close to 100% in value, it still hasn’t regained its footing from its 2021 peak when its price reached $0.57 during the previous market boom.
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2024-04-24 11:36