The price of HBAR surged dramatically after news circulated about a potential collaboration between Hedera and BlackRock, elevating it to the ranks of top cryptocurrencies. Investors became excited about the prospect of this partnership, leading to heightened interest and a sharp rise in HBAR’s value.
However, it later emerged that the surge was a result of misinterpretation, as the actual involvement between Hedera and BlackRock was different from what was initially thought. This misunderstanding caused HBAR’s price to spike temporarily, driven by inaccurate information.
BlackRock Denies Commercial Relationship with Hedera
BlackRock officially declared that it has no commercial ties with Hedera, nor has it chosen Hedera Hashgraph for tokenizing any BlackRock funds, including the $22 billion ICS U.S. Treasury Fund. This statement follows a social media announcement by the HBAR Foundation, suggesting that blockchain firms Archax and Ownera had tokenized BlackRock’s fund on Hedera.
The announcement led to widespread misinterpretation and a significant 100% surge in HBAR’s price on Tuesday. However, a spokesperson from BlackRock stressed that the company played no part in the tokenization process. Any future updates regarding BlackRock’s digital asset strategy will be directly communicated to the public.
HBAR Price Correction After BlackRock Clarification
Following an initial surge, HBAR’s price underwent a sharp decline, plummeting by 32.8% within 24 hours to $0.118 after reaching a peak of $0.176. The clarification from BlackRock played a significant role in this market correction, providing clarity on the situation.
Graham Rodford, CEO of Archax, later revealed on social media that it was his firm’s decision to utilize Hedera for tokenizing the BlackRock fund. However, he confirmed that BlackRock was aware of this action. Rodford emphasized in a subsequent interview that while Archax manages most tokenization decisions, they ensure to inform BlackRock, maintaining a positive relationship.
Despite these clarifications and the initial price surge, HBAR remains considerably below its all-time high in September 2021. Presently, the price of Hedera stands at $0.121194 USD, with a 24-hour trading volume of $913,337,959 USD. Over the last 24 hours, Hedera has experienced a 5.30% decrease. It holds the #25 position on CoinMarketCap, boasting a live market cap of $4,331,826,486. The circulating supply of HBAR coins is 35,742,801,273.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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