The recent surge in Hedera’s digital currency value, fueled by speculation of a collaboration between BlackRock and HBAR, has been swiftly debunked after BlackRock officially denied any business ties with the blockchain platform.
In an official statement, BlackRock, a prominent multinational finance corporation, clarified that it had no affiliation with Hedera and had not approved any tokenization activities for its funds, including the speculated $22 billion ICS U.S. Treasury Fund.
Market Reaction and Misunderstanding
Today we witness #RWA history as @BlackRock’s ICS US Treasury money market fund (MMF) is tokenized on @Hedera with @ArchaxEx and @OwneraIO, marking a major milestone in asset management by bringing the world’s largest asset manager on-chain 🏦 pic.twitter.com/1Kye8cjAJx
— HBAR Foundation (@HBAR_foundation) April 23, 2024
Following the announcement by the HBAR Foundation on X regarding the tokenization of BlackRock’s fund on Hedera by blockchain companies Archax and Ownera, the value of the Hedera token surged by over 100% on Tuesday. However, within twenty-four hours of BlackRock’s denial, the value plummeted by 32.8%, reaching a low of $0.118.
Clarification from BlackRock and Archax
A spokesperson for BlackRock affirmed that the company had no commercial relationship with Hedera and had not selected Hedera to tokenize any of its funds. Graham Rodford, CEO of Archax, clarified that while his organization had issued shares of BlackRock’s money market fund via Hedera, BlackRock had only been informed and was not actively engaged in the controversy.
Interview Insights and Impact on the Market
In an interview with crypto influencer Jesus Martinez, Rodford explained that they were approached by clients interested in investing in the BlackRock fund, prompting the tokenization strategy. Despite Rodford’s clarification, the misconception surrounding BlackRock’s involvement significantly impacted Hedera’s stock value.
The market has since stabilized following the resolution of the misunderstanding between BlackRock and Hedera. However, the HBAR Foundation has yet to provide a clear response to inquiries regarding the subject, leaving lingering questions about the nature of the tokenization process.
