Hedera's Cryptocurrency Hbar Gained Value Following A Misunderstood Statement Involving Blackrock!

The HBAR Foundation's widely misunderstood announcement caused confusion in the crypto community and led to an increase in the value of the HBAR token.

A BlackRock money market fund being tokenized on the Hedera blockchain resulted in a 96% increase in the value of the Hedera (HBAR) token in the past 24 hours due to misunderstandings. Despite stating its awareness of this operation, BlackRock, the world's largest asset manager, led many to believe it was directly involved in the transaction.

On April 23rd, the HBAR Foundation - the organization behind the Hedera network - announced that blockchain trading and infrastructure companies Archax and Ownera had tokenized BlackRock's ICS US Treasury Fund on their platform. The video shared during this announcement gave the impression that Ownera, Archax, and BlackRock were collaborating in this endeavor, leading HBAR to claim it had "brought the world's largest asset manager into the chain."

However, the announcement was widely misinterpreted by a large crypto community, leading to misconceptions. Consequently, many crypto influencers increased the belief, with over 1.6 million views and 2,700 shares, that BlackRock was responsible for moving the $22.3 billion fund onto the blockchain or was collaborating with Archax and Ownera.

Chris O'Connor, founder of Cardano Ghost Fund DAO, initially believed that BlackRock had "no involvement" in the development of Hedera and criticized the HBAR Foundation for how they framed the announcement. O'Connor explained the situation as follows: "What actually happened was an HBAR project through tokenized shares of a BlackRock fund on the secondary market. This is similar to buying a Rolex, taking a photo, and sharing it on my social media account, which doesn't mean Rolex has 'partnered' with me."

However, Graham Rodford, co-founder and CEO of Archax, defended the situation in his response to O'Connor, stating, "[Placing the BlackRock fund on] Hedera was definitely an Archax choice" and added that "everyone involved was aware of this."

According to CoinGecko, the recent 96% surge in HBAR has driven its price to the highest level in two years, at $0.175.

Despite the price pump, HBAR experienced a drop of over 69% compared to its all-time high of $0.57 in September 2021.

The announcement came after the Hedera Governing Council, which oversees the Hedera network, recently approved the allocation of 4.86 billion HBAR (valued at $408 million at the time) for further development of the network.

According to the Foundation's claim, these funds are part of a plan to strengthen the user base in 2024 following 33 billion transactions on the network in 2023.

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