HBAR price rises 96% after misinterpreted BlackRock news

Hedera’s cryptocurrency HBAR has witnessed a 96% increase in its value. This surge was triggered by a widely misinterpreted announcement involving BlackRock, the world’s largest asset manager.

The price of HBAR jumped from $0.087 to a peak of $0.175, driven by excitement surrounding the news that BlackRock’s US Treasury money market fund (MMF) has been tokenized on the Hedera network. At press time, HBAR was trading at $0.1305, indicating a 47.11% increase in the last 24 hours, according to data from CoinMarketCap.

HBAR/USD 1-day price chart (Source: CoinMarketCap)

However, it later became clear that BlackRock was not directly involved in the tokenization process. The real participants were blockchain trading and infrastructure companies Archax and Ownera, which used the Hedera network to tokenize the fund. This clarification led to a significant pullback in the price of HBAR, although details regarding the final settlement price varied slightly between different sources of information.

Market response to tokenization announcement

The market reaction to the news highlights the volatility and sensitivity of cryptocurrency prices to news and public perception. HBAR’s trading volume increased to $2.69 billion in the 24 hours following the announcement, as reported by CoinMarketCap. The initial misunderstanding was driven by a post from the Hedera Foundation that appeared to suggest a direct partnership or involvement from BlackRock to bring its fund “on-chain.”

This situation was further amplified by rapid sharing and comments on social platforms, with influential crypto figures discussing the perceived partnership. The Hedera Foundation’s promotional video, which suggested collaboration between Ownera, Archax and BlackRock, was a significant factor in the misinterpretation, garnering over 2.1 million views and extensive reposts.

Community clarification and reaction

As the true details of tokenization came to light, notable figures within the cryptocurrency community expressed their concerns about the misleading nature of the initial announcements. Chris O’Connor, the founder of the Cardano Ghost Fund DAO, criticized the Hedera Foundation for what he considered deceptive marketing practices.

O’Connor emphasized that BlackRock’s involvement was limited to merely being “aware” of the tokenization that used Hedera’s blockchain, rather than being an active participant.

Clarification from industry leaders and further investigation into the details of the announcement contributed to a more moderate understanding among investors and observers. Archax co-founder and CEO Graham Rodford later confirmed that the decision to tokenize the BlackRock fund on Hedera was at the sole discretion of Archax and the Owner.

Future prospects for Hedera and HBAR

Despite the rollercoaster of price movements and the enlightenment that followed, Hedera’s outlook remains optimistic among his supporters. The Hedera Global Governing Council recently approved the allocation of 4.86 billion HBAR, valued at approximately $408 million, for further development of the network. This funding is expected to strengthen Hedera’s infrastructure and expand its user base by 2024.

In 2023 alone, the Hedera network processed more than 33 billion transactions, demonstrating its capacity and the growing interest in blockchain solutions. While HBAR is currently trading well below its September 2021 high of $0.57, recent events have renewed interest and discussion surrounding Hedera’s technology offerings and their potential impact on the broader financial and technology landscape. broad.

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