- The HBAR token surged by more than 100% on Tuesday after a misunderstood message.
- BlackRock has clarified that the company was not involved in the tokenization initiative.
According to BlackRock, there is “no commercial relationship” between the two companies, and the investment giant did not tokenize any of its funds—including its $22 billion money market fund—using the Hedera Hashgraph.
After the HBAR Foundation announced on X that blockchain companies Archax and Ownera tokenized BlackRock’s ICS U.S. Treasury Fund on Hedera, the HBAR token (Hedera’s cryptocurrency) surged by more than 100% on Tuesday.
HBAR Token Price Plummets
A representative from BlackRock has clarified that the message did not indicate that the company was involved in the tokenization initiative, as some readers had assumed. At the time of writing, HBAR was trading at $0.1108, down 12.8% in the last 24 hours, as per data from CoinMarketCap.
The representative went on to say that BlackRock would keep the public updated on the progress of their digital asset strategy in the same way that they have in the past. Although some crypto influencers misunderstood the message, the statement from the HBAR Foundation has nevertheless managed to get over 3,200 reposts and 2.9 million views since it was uploaded a little over 36 hours ago.
Later on X, Archax CEO Graham Rodford explained that his business chose to tokenize shares of BlackRock’s money market fund, but that BlackRock was “aware” of Archax’s move. In a conversation with cryptocurrency YouTuber Jesus Martinez, Rodford went into additional detail about the subtlety.
The CEO stated:
“What we saw on Twitter was kind of pretty much close to the truth […] Archax had clients that wanted to invest in the BlackRock money market fund. When they expressed an interest we opened an account at BlackRock so that we could.”
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