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BlackRock has denied information about the partnership with Hedera. HBAR dropped by 38%

Forklog / 25.04.2024 / 13:38
BlackRock has denied information about the partnership with Hedera. HBAR dropped by 38%

BlackRock is not directly related to the decision of Archax and Ownera to tokenize ICS US Treasury money market fund (MMF) shares from the company on Hedera. This was stated by a representative of the company, writes Cointelegraph.

On April 23, the HBAR Foundation, a Hedera blockchain developer company, published a corresponding message, attaching pictures and videos with company logos. 

The market interpreted the news as a partnership with BlackRock, which led to a 110% jump in the exchange rate of the HBAR token.

The day before, the HBAR Foundation was criticized for misleading wording. The next day, an official reaction from the management company followed.

"BlackRock does not have a commercial relationship with Hedera, BlackRock did not choose Hedera to tokenize any funds," its representative said.

The denial led to a negative reaction in HBAR. The price fell from a peak of $0.182 after the news was published to the current $0.113

Archax CEO Graham Rodford indicated that BlackRock is "aware" that the firm is tokenizing the shares of the structure.

(17/18) If we decide to tokenise, arguably we do not need to approach the investment manager, but we always do as we want long term relationships. The investment manager’s level of involvement can vary but both abrdn and Blackrock were aware that we were tokenising on Hedera.

— Graham (@Grodfather) April 24, 2024

During an interview with influencer Jesus Martinez, he clarified this point.

$HBAR Recently Went Up 100% In A SINGLE Day Before Correcting

After news that @BlackRock's ICS Money Market Fund would be tokenized on @hedera

I had @Grodfather on, CEO/Co-Founder at @ArchaxEx (The people that tokenized BlackRock's MMF on Hedera to explain this all!) pic.twitter.com/wVp0J7n6jj

— Jesus Martinez (@0xJesusMartinez) April 24, 2024

"What appeared on Twitter was close to the truth [...] Archax has clients who wanted to invest in MMF. When they showed interest, we opened an account with BlackRock to meet the demand. We told [BlackRock] that we were going to do it. Then they warned about the release of a press release: "Hey, do you mind checking it out?"and they [...] provided their opinion," Rodford explained.

Recall that in July 2023, South Korean Shinhan Bank and Hedera tested cross-border payments through stablecoins. 

Earlier, the blockchain platform was attacked, as a result of which the attackers withdrew an unnamed amount. 

https://forklog.com/cryptorium/chto-takoe-hedera-hashgraph
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