HBAR Token Crashes By Almost 35% Following BlackRock Clarification

The HBAR token, native to the Hedera network, has experienced a sharp correction, plummeting by almost 35% following a misunderstanding regarding BlackRock’s involvement in the tokenization of its ICS Treasury Fund on the Hedera network. The confusion arose after the Hedera Foundation announced a collaboration between Archax and Ownera to tokenize BlackRock’s fund, leading many to believe that BlackRock itself had tokenized its fund on Hedera.

However, BlackRock has since clarified that they have no commercial relationship with Hedera and have not selected Hedera to tokenize any of their funds. Despite this clarification, the news is still seen as bullish for the Hedera ecosystem. Crypto analyst CrediBULL Crypto pointed out that BlackRock is a major shareholder of ABRDN, a firm that is a primary investor in Archax, suggesting that BlackRock must have approved the move, indirectly endorsing the product.

CrediBULL Crypto also highlighted that major enterprises like BlackRock are actively involved with building on the Hedera network, pushing it forward behind the scenes. This involvement sets Hedera apart from other networks and demonstrates its appeal to large corporations. Despite the initial misunderstanding leading to a significant price drop for HBAR, the long-term implications of BlackRock’s indirect involvement could still be positive for the Hedera ecosystem.