BlackRock Fund Tokenized on Hedera Blockchain, Causes 96% Surge Amid Misunderstandings
Summary:
BlackRock's money market fund was tokenized on the Hedera blockchain, causing the token to surge 96% within a day. However, BlackRock wasn't involved in the blockchain move. Misinterpretation of an HBAR Foundation X post led to the belief that BlackRock partnered with blockchain trading companies Archax and Ownera on the venture. The truth is that HBAR tokenized shares of a BlackRock fund via the secondary market. This event coincides with the Allocating of 4.86 billion HBAR ($408 million) for further network development by Hedera's governing council.
A Hedera tokenized version of BlackRock's money market fund shot up by 96% within the last day on the Hedera blockchain. However, BlackRock, the world's biggest asset management firm, was not involved in the blockchain transaction, contrary to common belief. A post from the HBAR Foundation X, associated with the Hedera network, was largely misunderstood on April 23. The post revealed that BlackRock's ICS US Treasury Fund had been tokenized on its network by the blockchain trading companies Archax and Ownera.
A video accompanying the announcement triggered the misconception, hinting at a partnership between BlackRock, Ownera, and Archax. Crypto influencers who misinterpreted the post fueled the misconception, propagating the idea that the $22.3 billion fund's blockchain move was initiated by BlackRock in partnership with Archax and Ownera.
Chris O'Connor, the founder of Cardano Ghost Fund DAO, stressed that BlackRock had absolutely no input in the development of Hedera network, condemning the wrong presentation of the partnership by HBAR Foundation.
In reality, HBAR had tokenized shares of a BlackRock fund via the secondary market, akin to purchasing a Rolex, sharing a picture on social media platforms but not implying a partnership with the luxury watch brand.
Despite the price hike, HBAR is still 69% below its all-time high in September 2021 at $0.57. The Hedera Global Governing Council, the governing body of the Hedera network, recently approved an allocation of 4.86 billion HBAR ($408 million at that time) to further network development, a part of HBAR Foundation's plan to boost its user base by 2024.
In 2023, the network processed 33 billion transactions, a claimed success by the foundation.
Published At
4/24/2024 8:34:00 AM
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