HBAR price jumps 75% after traders misinterpret statement about Blackrock

(This story was updated on April 24 at 07:50 GMT to explain that Blackrock didn’t choose Hedera to tokenize its money market fund (MMF). Tuesday’s statement from Archax, Ownera and The HBAR Foundation explaining that the fund has been tokenized on the Hedera blockchain led to confusion among traders, wrongly attributing to Blackrock the decision to tokenize the fund. The correct version follows.)

• Archax, Ownera and The HBAR Foundation said on Tuesday they have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera.
• The Foundation’s announcement suggested Blackrock’s direct involvement in the operation, but this wasn’t the case.
• HBAR price has exploded 75% to $0.1646, levels last seen in April 2022, but retreated afterwards.

Hedera Hashgraph (HBAR) price increased sharply on Tuesday after traders misinterpreted an announcement involving asset manager Blackrock in a fund tokenization project on the Hedera blockchain.

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Archax tokenizes Blackrock’s MMF on Hedera

On Tuesday, Archax, Ownera and The HBAR Foundation said in an official tweet that they enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera.

The initial announcement suggested that Blackrock chose Hedera for the project, which isn’t the case. Several crypto influencers on social media also highlighted this idea, supporting quick gains for the token. Archax CEO Graham Rodfort said later on its official X account that the choice to select Hedera came from them, not from Blackrock itself.

Archax is a London-based digital asset exchange, broker and custodian that partnered with the HBAR Foundation and Ownera, an institutional-grade digital assets platform, in a joint venture intended to bring the MMF to Hedera.

The news came after abrdn plc, the largest active wealth manager in the UK and one of the key members of the Hedera Council, tokenized its MMFs on Hedera in 2023. Its flagship tokenized funds represented a watershed moment in the asset management industry.

HBAR price pares gains

Hedera Hashgraph price soared 75% to a two-year high in response to the news, although it retreated somewhat once traders realized Blackrock wasn’t behind the decision of its fund’s tokenization.

HBAR/USDT 1-day chart