Concerning a recent event involving Hedera Hashgraph’s native token, HBAR, there was an enormous decline after it was made clear that BlackRock, the most prominent asset manager in the world, had nothing to do with tokenizing its ICS Treasury Fund on the Hedera network.
Following an initial price increase of over 100% when it was first announced, CoinGecko statistics shows that HBAR saw a significant decline in price of nearly 35%. Many people got an incorrect impression from this statement, which said that BlackRock’s fund would be directly tokenized on the Hedera network.
But on April 24, the Hedera Foundation said that the tokenization was a joint effort between the Blockchain trading firm Archax and the Infrastructure company Ownera, with no direct help from BlackRock.
HBAR’s Price Surge
Miscommunications by influential members of the crypto community, like CrediBULL Crypto and Mason Versluis, created a positive mood in the ecosystem, which drove HBAR’s price to its high point of $0.176.
Still, BlackRock has since said that they are not working with Hedera on these kinds of projects. A BlackRock spokesperson told that the company and Hedera do not do business with each other and that Hedera was not picked to tokenize any BlackRock funds.
Another thing that Archax’s co-founder said about the issue on social media was that BlackRock knew about the tokenization on the network but was not directly involved with it. Even though BlackRock was only indirectly involved, crypto analyst CrediBULL Crypto pointed out the good things that would happen for Hedera and its HBAR coin.
He thought that BlackRock’s large stake in ABRDN, which is one of the main investors in Archax, was a sign that they supported the tokenization effort.
Additionally, CrediBULL Crypto said that this development indicates that Hedera is being used by more and more major companies, making it a top network with significant successes.
He said that even though BlackRock might not be actively building on the network, the fact that it is connected to it indirectly makes it an improved foundation for tokenization projects, which makes it stand out from most networks.
