TL;DR
- Hedera’s HBAR token experienced a significant price surge of over 107% due to a misinterpretation of news involving BlackRock’s ICS U.S. Treasury money market fund being tokenized on its blockchain. The news led to rumors that BlackRock had selected Hedera for its fund tokenization project.
- The reality was that BlackRock did not have a direct role in the launch of the tokenized money market fund on Hedera. The decision to tokenize the fund was made by Archax, a blockchain trading and infrastructure firm. This clarification led to a significant drop in HBAR’s price, losing 25% of its value.
- The incident underscores the volatility and sensitivity of the crypto market to news and rumors, and the importance of accurate information dissemination. It serves as a reminder of the potential pitfalls of misinformation in the rapidly evolving world of cryptocurrencies.
Hedera’s native HBAR token experienced a significant price surge, followed by a sharp decline, all within 24 hours. The cause? A “misinterpretation” of news involving BlackRock, the world’s largest asset manager.
Tuesday, Hedera revealed that BlackRock’s ICS U.S. Treasury money market fund had been tokenized on its blockchain. The news spread rapidly on social media, sparking rumors that BlackRock had selected Hedera for its fund tokenization project. As a result, HBAR’s price surged by more than 107%.
However, the reality was quite different. BlackRock did not have a direct role in the launch of the tokenized money market fund on Hedera. The decision to tokenize the fund on Hedera was made by Archax, a blockchain trading and infrastructure firm. Archax CEO Graham Rodford clarified this in response to criticism about misleading marketing from Hedera.
The fake information caused the price of HBAR to drop significantly, losing 25% of its value. Despite this setback, the HBAR token has actually gained nearly 52% in the last 24 hours, trading at around $0.1344. However, there is limited market activity, with only $900,000 in total bids on Binance and Upbit within 2% of the current price of 14 cents.
The Real Story Behind BlackRock’s Fund Tokenization on Hedera
When the situation unfolded, Chris O’Connor, the creator of the Cardano Ghost Fund DAO, openly criticized the Hedera Foundation, accusing them of misleading the public. He made a point of clarifying that the top asset manager in the world had no part in the MMF tokenization. He shares his frustration via an X-post, stating:
“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.”
Instead, he clarified that the event was a project that utilized the Hedera blockchain to tokenize shares of a BlackRock fund in the secondary market. O’Connor voiced his annoyance over what he termed as “deceptive promotional” strategies used to artificially boost the value of HBAR.
The fake news highlights the volatility and sensitivity of the crypto market to news and rumors. It also underscores the importance of accurate information dissemination in the crypto space.
While the dust has settled on this particular incident, the episode serves as a reminder of the potential pitfalls of misinformation in the rapidly evolving world of cryptocurrencies. As the crypto market continues to mature, the need for clear and accurate communication from blockchain projects will only become more critical.
In the end, the rollercoaster ride of HBAR’s price serves as a cautionary tale for investors and traders alike, emphasizing the importance of thorough research and fact-checking before making investment decisions in the volatile world of cryptocurrencies.
