HBAR Plummets After BlackRock Says It Has ''No Commercial Relationship'' With Hedera

HBAR Plummets After BlackRock Says It Has ”No Commercial Relationship” With Hedera

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Updated: 25 April 2024

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HBAR’s price plummeted more than 15% over the past 24 hours after BlackRock said it has “no commercial relationship” with Hedera and had not selected the Hedera Hashgraph to tokenize any of its funds.

This follows an Apr. 23 announcement by the HBAR Foundation that said Archax and Ownera tokenized BlackRock’s ICS U.S. Treasury fund on the Hedera blockchain. Some mistakenly believed that the asset management giant was actively involved in this tokenization effort.

A spokesperson for BlackRock confirmed that this is not the case.

HBAR Foundation’s Post Goes Viral

HBAR Foundation’s post went viral and accumulated over 3 million views. Several crypto influencers misinterpreted the message.

“BLACKROCK JUST TOKENIZED ONE OF THEIR MONEY MARKET FUNDS ON HEDERA,” Mason Versluis told his 189,000 followers on X.

BLACKROCK JUST TOKENIZED ONE OF THEIR MONEY MARKET FUNDS ON HEDERA $HBAR! 🔥 https://t.co/0TCxUfGjKa

— MASON VERSLUIS (@MasonVersluis) April 23, 2024

Archax CEO Graham Rodford later clarified that the decision to tokenize shares of BlackRock’s money market fund was made by his firm. The Wall Street titan was aware that these shares were going to be tokenized, he added.

BlackRock Gave The Announcement The Go-Ahead

“What we saw on Twitter was kind of pretty much close to the truth, “ Rodford said in an interview with crypto YouTuber Jesus Martinez. Archax clients wanted to invest in BlackRock’s money fund, which led to Archax creating an account at BlackRock.

The company then tokenized the shares – something it does with many of its investments, Rodford said. A press release, which received the greenlight from BlackRock, was then released, he added.

After rallying more than 100% on Apr. 23, the Hedera price has undergone a substantial correction. Trading at $0.1131 as of 4:20 a.m. EST, the crypto is, however, still in the green by more than 45% on the weekly timeframe.