HBAR, the native token of the Hedera blockchain, exploded by over 96% amid the contested involvement of BlackRock in tokenizing a fund on Hedera.
On Tuesday, HBAR Foundation announced the tokenization of BlackRock’s ICS U.S. Treasury money market fund (MMF) on the Hedera blockchain alongside infrastructure firms Archax and Ownera.
The announcement emphasized that the development marked a significant milestone, with Hedera welcoming a fund from the world’s largest asset manager.
Today we witness #RWA history as @BlackRock’s ICS US Treasury money market fund (MMF) is tokenized on @Hedera with @ArchaxEx and @OwneraIO, marking a major milestone in asset management by bringing the world’s largest asset manager on-chain 🏦 pic.twitter.com/1Kye8cjAJx
— HBAR Foundation (@HBAR_foundation) April 23, 2024
Hedera’s New Tokenization Move
The report noted that the development adds to the Hedera platform’s expanding array of institutional RWAs. It reportedly builds upon the precedent set by Abrdn plc, the UK’s largest active wealth manager, which tokenized its flagship multi-billion euro MMF on Hedera last year.
HBAR Foundation noted that the addition of BlackRock’s MMF, along with existing offerings, is accessible directly on the Archax platform and through affiliated networks catering to professional and institutional clients. The announcement has sparked considerable interest within the crypto sphere, racking up over 2 million views on X.
HBAR Takes Flight
Considering the weight of the announcement, Hedera’s HBAR token has emerged as the top performer among the most prominent cryptocurrencies. In the last 24 hours, HBAR soared by 96.96%, rising from a low of $0.09154 to $0.1806. Notably, this price point mirrors levels observed precisely a year ago.
However, some prominent figures in the crypto community have pointed out that HBAR’s remarkable surge may have been fueled by a misconception regarding BlackRock’s involvement with Hedera’s blockchain.
Debate Around BlackRock Involvement
In response to the announcement, Chris O’Connor, the founder of Cardano Ghost Fund DAO, emphasized that BlackRock itself has not chosen Hedera for tokenizing its fund. He added that BlackRock has no involvement in the new development and maintains no connection to Hedera.
Furthermore, the Cardano OG explained that what occurred was a project associated with HBAR tokenizing shares of a BlackRock fund through the secondary market. He likened it to a scenario where someone purchases a Rolex, takes a picture, and posts it on their social media account. Essentially, this action does not imply that Rolex has officially partnered with the individual.
Notably, the HBAR Foundation promoted the idea of a BlackRock partnership via the video accompanying the announcement. The inscription was “Ownera X Archax X BlackRock built on Hedera,” sparking congratulatory messages.
Meanwhile, in response to O’Connor’s commentary, Archax CEO Graham Rodford clarified that Archax made the decision to tokenize the BlackRock fund on Hedera. He noted that while it was Archax’s decision, and all parties involved were fully informed and aware of the process.
Hey @TheOCcryptobro it was indeed an @ArchaxEx choice to put on @hedera and, given our reg status we are one of the only places that can create, custody & trade these. It was our choice but everyone involved was aware. (1/2)
— Graham (@Grodfather) April 23, 2024
Nonetheless, O’Connor expressed concerns that the HBAR Foundation’s marketing language may have been misleading, given the ensuing frenzy. He projected that retail investors could get burnt after the rally cools off.
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