The recent price spike in Hedera’s HBAR token, which saw it surge over 100% in a single day, was driven by a misinterpretation of investment giant BlackRock’s involvement with tokenizing funds on Hedera’s blockchain.
The confusion arose from an HBAR Foundation post stating that Archax and Ownera had tokenized BlackRock’s ICS US Treasury Fund on Hedera’s network. Many in the crypto community took this to mean BlackRock itself was directly participating in the initiative.
However, Graham Rodford, CEO of Archax, has now clarified that while BlackRock was made aware of the fund tokenization by Archax, the asset manager did not actively take part in the process. Archax tokenized the fund itself as part of its program to issue tokenized fund shares using Hedera’s blockchain.
Rodford explained that though not required, Archax informed BlackRock beforehand in the interests of transparency and building trust, as the firm believes in open communication with investment managers about such initiatives.
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