HBAR Prices Crashes 35% As BlackRock Denies Any Ties To Hedera

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As a seasoned crypto investor with over five years of experience in the market, I’ve seen my fair share of false rumors and misinformation leading to significant price swings. The recent HBAR token crash is yet another reminder of how crucial it is to separate fact from fiction in this space.

The price of HBAR, Hedera’s native token, experienced a notable decline after it became clear that BlackRock, the world’s largest asset manager, was not directly participating in the tokenization process of its ICS Treasury Fund on the Hedera network.

HBAR Token Crashes By Almost 35%

According to CoinGecko’s data, the value of HBAR tokens has dropped by approximately 35% since their significant price increase following a misunderstanding. This misconception arose after the announcement on April 24, in which the Hedera Foundation revealed that Archax and Ownera had teamed up to tokenize BlackRock’s ICS US Treasury money market fund (MMF) on the Hedera network, leading some to believe incorrectly that BlackRock had adopted the HBAR token.

I’ve observed that within the crypto community, some influential figures like CrediBULL Crypto and Mason Versluis have misunderstood BlackRock’s announcement. They believed that BlackRock had tokenized its fund on Hedera, leading to an exciting narrative about the ecosystem. Consequently, HBAR’s price experienced a significant surge of over 100%, reaching a peak of $0.176.

Despite initial optimism, the value of the crypto token has since decreased significantly. Contrary to reports suggesting otherwise, BlackRock, the world’s largest asset manager, has neither collaborated with Hedara nor chosen it as a platform for tokenizing their funds. A representative from BlackRock confirmed this to Cointelegraph.

Simultaneously, Archax’s co-founder explained on his X platform (previously Twitter) that BlackRock didn’t play a direct role in the entire process. He mentioned that fund tokenization is typically possible without the asset manager’s consent. Nevertheless, he disclosed that BlackRock was aware of the tokenization taking place on the network.

Why The News Is Still Bullish For The Hedera Ecosystem

I’ve observed that although I, myself, am not part of BlackRock’s team, crypto analyst CrediBull Crypto has shared some insight on why recent news remains positive for Hedera and its HBAR token. He disclosed that BlackRock is the fourth biggest shareholder of ABRDN, a company that serves as a significant investor in Archax.

From my perspective as an outside observer, it’s clear that the crypto analyst thinks BlackRock has given its approval to this move by investing in the cryptocurrency or blockchain project. He views this as a significant endorsement of the product. Furthermore, I recall him mentioning an interview where BlackRock disclosed their decision to work with Hedera, even though Aberdeen Standard Investments introduced them to the network initially.

I’ve observed that while BlackRock may not be directly constructing on Hedera, it is undeniable that major enterprises are deeply engaged with the network. They aren’t just idly watching; instead, they’re actively contributing to its development and driving it forward stealthily. This level of involvement sets Hedera apart from over 99% of networks that can’t claim such significant corporate backing.

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2024-04-25 17:10