Public chain developer HBAR Foundation recently claimed to have successfully tokenized BlackRock’s Money Market Fund, leading the crypto community to believe that HBAR had a deep collaboration with BlackRock. However, BlackRock subsequently denied this news, causing the HBAR token to experience significant fluctuations.
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BlackRock Fund on the Blockchain? Misunderstanding Arises from Hedera’s Announcement of Collaboration
Hedera (HBAR) Experiences Significant Price Fluctuations
BlackRock Spokesperson: No Business Relationship
BlackRock Fund on the Blockchain? Misunderstanding Arises from Hedera’s Announcement of Collaboration
According to an announcement by HBAR Foundation, the developer of Hedera, the UK compliant exchange Archax has jointly launched a tokenized product for BlackRock’s Money Market Fund (MMF) in collaboration with the HBAR Foundation. Both the BlackRock MMF and its existing products can be used on the Archax platform after tokenization. The first tokenized stock transaction of BlackRock MMF was successfully completed on the digital asset network of tokenization service provider Ownera FinP2P.
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Hedera (HBAR) Experiences Significant Price Fluctuations
As shown in tweets and the announcement, the crypto community seemed to believe that HBAR had a deep collaboration with BlackRock. Within 12 hours of the news release, the HBAR token surged by 106%, rising from $0.088 to $0.181. However, some people subsequently accused BlackRock of never participating in fund tokenization, leading to a 40% drop in HBAR’s price. The HBAR Foundation’s tweet was also corrected by numerous comments and community notes.
HBAR/USDT|OKX
BlackRock Spokesperson: No Business Relationship
A spokesperson from BlackRock told Cointelegraph that BlackRock has no business relationship with Hedera and has not chosen Hedera to tokenize any BlackRock funds. Graham Rodford, CEO of Archax, explained the situation in a lengthy tweet, stating that it was the users who wanted to invest in BlackRock’s Money Market Fund that led to the tokenization, emphasizing that BlackRock was aware of their actions. The HBAR Foundation has kept the tweet pinned and has not provided an explanation for the community’s misunderstanding, only retweeting an interview conducted by Archax CEO after the incident.
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Further Reading
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