In a dramatic turn of events, the HBAR token, associated with the Hedera blockchain, saw an astonishing 96% rise within 24 hours, triggered by a widely misinterpreted announcement involving BlackRock, the world’s largest asset manager. This unexpected surge came after it was revealed that shares of BlackRock’s ICS US Treasury Fund were tokenized on the Hedera network by firms Archax and Ownera. However, BlackRock swiftly confirmed that it had no commercial ties with Hedera, contradicting the widespread belief of their partnership.
The confusion stemmed from an announcement video that implied a collaboration between Ownera, Archax, and BlackRock, leading to speculative trading that drove HBAR to a two-year peak of $0.175. Despite the buzz, BlackRock clarified that any updates regarding their digital asset strategy would be communicated directly by them, distancing themselves from the Hedera initiative.
The frenzy was further fueled by influential crypto personalities who misread the situation, attracting over 1.6 million views and numerous shares, adding to the misinformation. Chris O’Connor of Cardano Ghost Fund DAO criticized the HBAR Foundation for the misleading portrayal of the announcement, likening it to claiming a partnership simply by purchasing and showcasing a product.
Graham Rodford, co-founder of Archax, acknowledged that the decision to tokenize BlackRock’s fund on Hedera was solely their initiative, with all parties informed. Despite the recent spike, HBAR’s value is still down more than 69% from its September 2021 high.
This episode highlights the volatile nature of cryptocurrency markets and the impact of communication on investor behavior. It also marks a significant moment for the Hedera network as it continues to expand and develop with a recent allocation of 4.86 billion HBAR for network growth, aiming to build on the substantial transaction volume reported in the previous year.