The price of HBAR, the native token for the Hedera blockchain, experienced a significant increase of approximately 90% after a misunderstood declaration from the HBAR Foundation left crypto experts perplexed.
A money market fund managed by BlackRock was converted into a digital token and added to the Hedera blockchain, leading to a significant 94% increase in value for the Hedera token over the past day. Contrary to widespread belief, however, BlackRock itself did not participate directly in this on-chain transaction.
On April 23, the HBAR Foundation X team, who manage the Hedera network, posted an update that has been misunderstood by many. They announced that companies in the blockchain sector, Archax and Ownera, had tokenized BlackRock’s ICS US Treasury Fund using their respective platforms.
In simpler terms, the video hinted at a partnership between Ownera, Archax, and BlackRock for this project, while HBAR boasted about bringing “the world’s biggest asset manager” into the blockchain realm.
A number of crypto influencers, each with a significant X follower base, misunderstood a post that received over 1.6 million views and 2,700 reposts within 15 hours. As a result, they erroneously concluded that BlackRock had shifted its $22.3 billion fund to the blockchain or forged alliances with Archax and Ownera.
BLACKROCK JUST TOKENIZED ONE OF THEIR MONEY MARKET FUNDS ON HEDERA $HBAR! 🔥 — MASON VERSLUIS (@MasonVersluis) April 23, 2024
In collaboration with the HBAR Foundation and Ownera, a leading institutional digital asset platform based in London, Archax – a digital asset exchange, broker, and custodian – introduced the MMF (Money Market Fund) onto the Hedera network.
In 2023, abrdn plc, the UK’s largest active wealth manager and a prominent member of the Hedera Council, will convert its Money Market Funds (MMFs) into digital tokens on the Hedera platform. This move is expected to set a significant milestone in the asset management industry.
Chris O’Connor, founder of the Cardano Ghost Fund DAO, made it clear that BlackRock had no role in the advancements of the Hedera project. He also criticized the HBAR Foundation for presenting their collaboration announcement deceptively. Using an analogy, he likened this to an individual purchasing a high-end product and subsequently claiming a partnership with the brand.
“A HBAR project allowed buying tokenized shares of a BlackRock fund through the secondary market, similar to purchasing a Rolex and sharing a picture on X. This does not imply that the Rolex company partnered with you.”
We attempted to contact Chris O’Connor from Crypto.news about the issue, but he hadn’t responded by the time of publishing this piece.
Currently, as I pen this down, the value of Hedera’s token hovers around $0.1415, marking a significant 60% increase over the past 24 hours. Meanwhile, the trading volume for HBAR reached an impressive $2.76 billion within the same timeframe.
More recently, the Hedera Global Governing Council, responsible for managing the Hedera network, granted approval for a $408 million budget from the HBAR Foundation towards expanding the network in the future. This financial allocation aligns with the foundation’s goals to expand its user base significantly in 2024. Notably, the network executed approximately 33 billion transactions during the preceding year of 2023.
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2024-04-24 11:40