Unexpectedly, Hedera’s native token, HBAR, underwent a remarkable price increase of more than 100% in the wee hours of Tuesday. The coin, which had started at a low of $0.0875, soared to touch $0.1821 by Wednesday.
The unexpected development was initiated when word broke out about BlackRock launching its tokenized fund, BUIDL. This announcement fueled great enthusiasm among Hedera investors, who speculated that a partnership between the influential asset manager and the Hedera protocol was imminent.
Not Directly Connected To Hedera?
In March 2024, BlackRock introduced BUIDL, which functions as a tokenized investment fund based on the Ethereum blockchain. This innovation enables users to earn US dollar returns through digital tokens.
At first, investors were perplexed by the news that BlackRock might tokenize its fund on the Hedera network through an announcement. However, it was later clarified that BlackRock would not be directly involved in this process. Despite this clarification, there was still a notable increase in the price of HBAR due to this misunderstanding.
After taking a closer look at the announcement, it was evident that there was no immediate link between BlackRock and Hedera, despite an initial stir caused by the news.
Experts in cryptocurrency, known as “CrediBull” on social media platform X (previously Twitter), explained that BlackRock didn’t need to give explicit approval for the listing of tokenized variations of their funds.
An unintentional action occurred whereby one of BlackRock’s funds was tokenized on Hedera by an independent platform on the network. Yet, this occurrence showcases the pioneering role of Hedera’s platform within the tokenization industry.
Analyst Clarifies Misconception
Upon closer inspection, it is found that Archax, the entity responsible for the tokenized BlackRock investment on Hedera, is actually a subsidiary of ABRDN Investments. This prominent financial institution based in the UK manages an impressive $500 billion in assets.
Furthermore, it is worth mentioning that BlackRock holds the position as ABRDN’s fourth largest shareholder, according to CrediBull. It’s important to note that approximately ten months ago, Archax tokenized one of ABRDN’s money market funds. Before BlackRock introduced their own fund.
The Head of Digital Assets at ABRDN explained their role in the tokenization process on Archax through an interview. With a signed “distribution agreement,” the tokenization could move forward. If a similar deal were struck with BlackRock, it would suggest that the asset manager was supporting the product.
In summary, the interview with the head of digital assets at ABRDN highlights that major figures are quietly supporting and expanding Hedera’s development.
After the explanation of the recent developments, HBAR‘s price is now at $0.1199. However, it has risen by 8% in the last day and experienced a significant increase of around 60% within the last week.
According to data from CoinGecko, there’s been a massive jump of more than 1,100% in HBAR‘s trading volume over the last few days. This significant increase suggests that the news announcement caused considerable uncertainty among traders.
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2024-04-25 05:10