HBAR falls 32% as BlackRock denies any business ties to Hedera

The recent debunking of the BlackRock-Hedera collaboration speculations, after the misunderstanding caused the brief rise of Hedera’s digital currency value, has fixed the latest updates to the truth. 

In an official statement, BlackRock, a well-known multinational finance corporation, clarified that it had no business with Hedera and did not also approve any tokenization activities for its funds. These activities included the speculated $22 billion ICS U.S. Treasury Fund.

The Hedera token increased by more than 100 percent on Tuesday, following the HBAR Foundation’s announcement on X that blockchain companies Archax and Ownera had tokenized the ICS U.S. Treasury Fund of BlackRock on Hedera

A spokesperson for BlackRock confirmed that the company does not have any commercial relationship with Hedera and has not selected Hedera to tokenize any of its funds. The value of the Hedera token decreased by 32.8% within twenty-four hours following this occurrence, peaked at $0.176, and then dropped to $0.118. 

The main reason for the confusion was a tweet by Mason Versluis, who has almost 1.8 million followers on social media platform X and claims that BlackRock has tokenized one of its funds on Hedera, which is false. This was contrary to what BlackRock stated, since it said that it would make any future updates on its digital asset strategy.

Furthermore, the situation was further complicated when Graham Rodford, the chief executive officer of Archax, revealed that his organization had chosen to issue shares of BlackRock’s money market fund via Hedera. Nevertheless, he reassured the public that BlackRock had merely been duly informed and not actively engaged in this controversy.

In an interview last week with a crypto influencer on YouTube, Jesus Martinez, Rodford elucidated that they were approached by clients who were willing to invest in the BlackRock fund. By adopting this strategy, Archax was able to tokenize the fund and increase its client base. Additionally, he revealed that BlackRock had yet to initiate direct communication with them, contrary to press reports suggesting he contemplated doing so.

Rodford’s statement aimed to refute the erroneous belief that BlackRock was instrumental in the tokenization process. Despite the prominent involvement of Archax, he insisted that BlackRock was not involved, contrary to previous allegations. Unfortunately, the misperception had significantly impacted Hedera’s stock value, even prior to its resolution.

The market has cooled down following a period of enthusiasm and then decrease caused by a misunderstanding of the relationship between BlackRock and the matter, and the HBAR Foundation has not yet provided a clear response to questions regarding the subject.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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