A money market fund managed by BlackRock has been converted into a digital token and transferred onto the Hedera blockchain, leading to a significant surge of approximately 96% in the value of Hedera’s HBAR tokens within the past 24 hours. However, it is essential to clarify that this price increase was not initiated by BlackRock itself. Despite some speculation, the world’s largest asset manager did not participate in the on-chain transaction.
On April 23, a post from the HBAR Foundation X, which is responsible for the Hedera network, clarified that Archax and Ownera, two companies specializing in blockchain trading and infrastructure, had tokenized BlackRock’s ICS US Treasury Fund on their platform using the Hedera network.
Based on the announcement’s video content, it appeared that Ownera, Archax, and BlackRock had formed a partnership for this venture. HBAR stated that they were “bringing the world’s largest asset manager onto the blockchain.”
Crypto influencers having substantial X follower bases spread a misunderstanding about a post that gained over 1.6 million views and 2,700 shares in the last 15 hours. They mistakenly assumed that BlackRock was behind the $22.3 billion fund’s transition to the blockchain or had collaborated with Archax and Ownera.
Chris O’Connor, founder of the Cardano Ghost Fund DAO, emphasized that BlackRock held no role in Hedera’s creation and criticized the HBAR Foundation for how they presented the collaboration announcement.
“What did happen was a HBAR project through the secondary market tokenized shares of a BlackRock fund. Much like I can buy a Rolex take a pic and post it on my X account. Doesn’t mean Rolex ‘partnered’ with me.”
In just one day, the price of HBAR has surged by 96%, reaching a peak of $0.175 – a figure not seen since two years ago, based on data from CoinGecko.
Despite the price pump, HBAR is still down over 69% from its September 2021 all-time high of $0.57.
Recently, the Hedera Global Governing Council, responsible for managing the Hedera network, made an announcement authorizing the investment of approximately 4.86 billion HBARs (equivalent to around $408 million) for enhancing the network’s development.
According to the HBAR Foundation’s announcement for the coming year, a portion of their funds will be utilized to bolster their user base in 2024. This decision comes after an impressive year in 2023, where approximately 33 billion transactions were facilitated on their network.
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2024-04-24 08:50