BlackRock has officially stated it has no business dealings with Hedera and did not authorize the tokenization of its funds through Hedera Hashgraph. This clarification comes after significant misinterpretation of a social media post by the HBAR Foundation, which led to a dramatic surge and subsequent drop in HBAR’s value.
Misunderstandings Lead to Market Fluctuations
On Tuesday, the HBAR token experienced a sharp increase, more than doubling in value, following a claim by the HBAR Foundation on social media platform X. The post suggested that BlackRock’s ICS U.S. Treasury Fund had been tokenized on the Hedera blockchain by Archax and Ownera. However, this announcement was misread by many, including influencers, as an indication of BlackRock’s direct involvement in the tokenization process.
A BlackRock spokesperson has since clarified that the company has no commercial ties with Hedera and has not chosen Hedera for tokenizing any of its funds. As a result, HBAR saw a significant price correction, dropping 37% to $0.112 within 24 hours of its peak at $0.179.
Official Statements and Clarifications
Despite the HBAR Foundation’s post gaining widespread attention with over 2.9 million views and 3,200 reposts, BlackRock maintains that it was not involved in the decision to tokenize its money market fund on Hedera. Archax CEO Graham Rodford also clarified that it was solely Archax’s decision to use Hedera for tokenization, although BlackRock was informed about the move.
In a discussion with crypto YouTuber Jesus Martinez, Rodford noted that Archax chose to tokenize the BlackRock fund shares after their clients showed interest in investing. “We opened an account at BlackRock for this purpose, and we informed them when we decided to tokenize the investments,” Rodford explained. He further mentioned that BlackRock reviewed a press release about the tokenization, providing feedback based on a good-standing relationship.
This incident highlights the importance of clear communication in the crypto space, where misinformation can lead to rapid market changes. BlackRock has reiterated its strategy of direct communication regarding its digital asset endeavors to avoid future confusion.
