BlackRock Clarifies: No Direct Role in HBAR Tokenization, Causes Price Drop

The financial landscape was hit with turbulent currents as HBAR, the signature token of Hedera, took a nosedive following clarifications that global financial colossus, BlackRock, was not directly implicated in the tokenization process of its International Capital Strategy (ICS) Treasury Fund on the Hedera network.

In response to the initial news misinterpretation, the HBAR token skyrocketed to more than double its normal value. However, in the wake of clarification, data from CoinGecko reflects a sharp decline of almost 35%.

All tumult and confusion could be tracked back to April 24, when Hedera Foundation announced that Blockchain trading developer, Archax, and Infrastructure firm, Ownera, had creatively partnered to tokenize the ICS US Treasury Money Market Fund of BlackRock on Hedera.

The news sent shockwaves through the cryptocurrency community at large. Many influential voices, including crypto pundits CrediBULL Crypto and Mason Versluis, misinterpreted the announcement to mean that BlackRock had personally engineered the tokenization of its fund within the Hedera framework. This misunderstanding catalyzed a ripple effect of optimism within the ecosystem that fueled HBAR’s value to skyrocket over 100%, eventually peaking at a staggering $0.176.

But the glory was short-lived. A spokesperson for BlackRock categorically denied any active involvement with Hedera, stating that, “BlackRock has no commercial relationship with Hedera nor has BlackRock selected Hedera to tokenize any BlackRock funds.”

Graham Rodford, Co-founder of Archax, also clarified on his X (formerly Twitter) platform that BlackRock wasn’t directly implicated in the process. His statements suggested that typically, such tokenizations can proceed without the express consent or active participation of the asset manager. Additionally, he confirmed that Blackrock was cognizant of the tokenization process unfolding on the network.

Regardless of BlackRock’s absence from direct involvement, CrediBULL Crypto suggests this revelation should still inspire optimism for Hedera and the HBAR token. Evidently, BlackRock is the fourth largest shareholder of leading financial firm ABRDN, which holds a major stake in Archax, thereby linking the financial giant indirectly to the operation.

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CrediBULL Crypto articulates that BlackRock, by virtue of its stake in ABRDN, likely tacitly endorsed the move. Although ABRDN was the gatekeeper that introduced BlackRock to Hedera, it was Hedera that BlackRock eventually chose to zero in on.

CrediBULL Crypto emphasizes that Hedera’s network continues to be engaged by major enterprises, with constant efforts to fortify it and propel it forward. This testimony, he suggests, distinguishes Hedera from the vast majority of other networks. Prominent engagements and advancements arguably place Hedera atop 99% of its competition.

Note: Investing comes with inherent risks. Readers are advised to conduct independent research or engage professional advice before making any investment decisions. The information contained in this article represents only its author’s view and should not be used as the basis for any financial decisions.