If there’s one cryptocurrency that has experienced significant FOMO, FUD, and crazy price action this week, it’s Hedera Hashgraph (HBAR-USD). On Tuesday, The HBAR Foundation’s X account announced the tokenization of a BlackRock (NYSE: BLK) money market fund, triggering a notable surge and subsequent drop in HBAR’s value. However, it was soon revealed that Archax, a third party, not BlackRock, initiated the tokenization using Hedera’s blockchain technology.
While the fund was associated with BlackRock, their role was minimal, limited to an awareness of Archax’s actions. This misunderstanding initially led investors to believe that BlackRock had actively chosen Hedera for the tokenization, resulting in a more than 100% spike in HBAR’s price, which has since plummeted by nearly -38% as the truth unfolded.
Clarifications and Updates
Further clarification came when a BlackRock spokesperson told CoinDesk, “BlackRock has no commercial relationship with Hedera nor has BlackRock selected Hedera to tokenize any BlackRock funds. As we have in the past, BlackRock will communicate directly with the public on the evolution of our digital asset strategy.” This statement clarified that BlackRock was neither involved in the decision-making process nor had it endorsed Hedera for the tokenization efforts.
Graham Rodford, CEO of Archax, earlier comments on X complemented BlackRock’s response. That the decision to use Hedera was solely theirs (Archax) and that while BlackRock was aware of the tokenization, they did not participate or authorize it. This incident reinforces the critical importance of clear communication in financial and technological partnerships and demonstrates how quickly misinformation can influence market movements. A substantial portion of the crypto news media to generate headlines that suggested BlackRock was intimately involved, when, in fact, they were not.
As the dust settles, this episode serves as a poignant reminder for investors and the crypto community to scrutinize news and announcements thoroughly before reacting. It also marks a moment of learning for entities issuing such news to ensure clarity and accuracy, avoiding implications of endorsements or partnerships that do not exist.
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