A significant increase of more than 100% in one day for Hedera’s HBAR token occurred due to a misunderstanding regarding BlackRock’s role in creating investment funds based on the Hedera blockchain.
The misunderstanding stemmed from a statement by the HBAR Foundation that Archax and Ownera had tokenized BlackRock’s ICS US Treasury Fund on Hedera’s network. Some people in the cryptocurrency community assumed this meant BlackRock was actively involved in the project.
Graham Rodford, CEO of Archax, explained that although BlackRock was informed about the fund tokenization carried out by Archax, the asset manager did not participate directly in the process. Instead, Archax took the initiative to tokenize the fund through its partnership with Hedera’s blockchain for issuing tokenized fund shares.
If we choose to tokenize our investment, it may not be necessary for us to consult the investment manager; however, we value building long-term relationships with them. The investment managers, such as abrdn and Blackrock, were informed about our tokenization initiative on Hedera, but the extent of their involvement can vary.
— Graham (@Grodfather) April 24, 2024
Rodford shared that while it wasn’t necessary, Archax chose to tell BlackRock in advance for greater transparency and trust-building. They value clear communication between investment managers and themselves regarding new initiatives.
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2024-04-25 06:12