Hedera's HBAR Token Price Skyrockets Following Misunderstood BlackRock Announcement
A largely misunderstood announcement from the HBAR Foundation triggered a surge in HBAR token's price, spiking by 96% within 24 hours. The confusion resulted from a claim that a BlackRock money market fund had been tokenized on the Hedera blockchain. However, it appears that BlackRock, the world's largest asset manager, was not involved in the move on-chain, contrary to widespread belief.
The HBAR Foundation posted on April 23, stating that blockchain trading and infrastructure firms Archax and Ownera had tokenized BlackRock's ICS US Treasury Fund on its network. Accompanied by a video, the post implied a partnership between Ownera, Archax, and BlackRock, stating it was "bringing the world's largest asset manager on-chain."
Unfortunately, misinterpretations of the post ran rampant among influential crypto figures. Some believed that BlackRock was responsible for the fund's move onto the blockchain or that it had partnered with Archax and Ownera. The post gathered significant traction, garnering over 1.6 million views and 2,700 reposts in just 15 hours.
Chris O'Connor, the founder of Cardano Ghost Fund DAO, clarified that BlackRock has "no involvement" with Hedera's development and lambasted the HBAR Foundation for its presentation of the announcement. HBAR's token price escalated to a two-year peak of $0.175 despite the confusion, a 96% rally over the previous day. Notably, even after the surge, HBAR's value remains down by over 69% from its September 2021 all-time high of $0.57.
In related news, the Hedera Global Governing Council, which supervises the Hedera network, authorized allocating 4.86 billion HBAR (valued at $408 million then) for further network enhancement.