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Archax and The HBAR Foundation have introduced tokenized BlackRock ICS US Treasury money market fund offerings. It is meant to expand its MMF lineup on Hedera and Ethereum blockchains. This step aims to provide institutional stability and yield in the current interest-rate environment.
CEO Graham Rodford talks about offering a variety of MMFs, while Ownera’s Ami Ben David mentions spreading them through their FinP2P network. Shayne Higdon from The HBAR Foundation sees this as a big vote of confidence in Hedera’s system.
Hedera’s HBAR token doubled in value after the announcement that BlackRock’s U.S. Treasury money market fund had been tokenized on Hedera’s blockchain. However, the token fell by 25% when it became clear that BlackRock wasn’t directly involved in the tokenization. BlackRock confirmed it had no commercial relationship with Hedera.
BlackRock’s Clarification on Hedera Relationship
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.
It followed a surge of over 100%. Some crypto critics claim that BlackRock is directly involved in this tokenization effort. Yet, a spokesperson of BlackRock issued an official statement that this is a false allegation. In this regard, he addressed myths about BlackRock and why the firm had nothing to do with the tokenization process.
Read more: HBAR’s BlackRock Rollercoaster: 100% Surge, 47% Plunge, What’s Next?
HBAR’s Rollercoaster: Surge on BlackRock Confusion, 32.8% Drop Despite High Trading
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?