HBAR, the original token of the Hedera blockchain, saw a huge 90% increase during a storm of confusion. The rise happened after the HBAR Foundation made a statement that many people got wrong, leaving crypto experts scratching their heads.
The mess started with a post on April 23 by the HBAR Foundation X, which is in charge of the Hedera network. It was said in the post that BlackRock’s ICS US Treasury Fund had been tokenized on the Hedera platform by blockchain trade and infrastructure companies Archax and Ownera. This made people think that BlackRock, which is the most prominent asset manager in the world, had something to do with the rise in HBAR.
HBAR confusion clarified, criticized.
The misunderstanding spread quickly, and a number of crypto leaders made it even more confusing. Chris O’Connor, founder of the Cardano Ghost Fund DAO, made it clear, though, that BlackRock had nothing to do with how the Hedera project was developed. O’Connor said that the Token Foundation misled people with their announcement. She compared it to someone saying they had a partnership with a luxury brand after buying one of their goods.
The goal of the partnership between Archax, Ownera, and the HBAR Foundation was to tokenize the funds market fund (MMF) on the Hedera blockchain. The most significant active wealth manager in the UK and a key member of the Hedera Council, abrdn plc, took a similar step when it tokenized its MMFs on Hedera in 2023.
The price of the Hedera token was $0.1415 at the time of the news, which is a 60% rise in the last 24 hours. During the same time period, $2.76 billion worth of Token was traded.
This mess happened after the Hedera Global Governing Council recently agreed to spend 4.86 billion HBAR, which was about $408 million at the time, on expanding the network in the future. According to the foundation, these funds will be used to increase the number of people who use the HBAR Foundation in 2024. This comes after the network’s great success in 2023, when 33 billion transactions took place.
