The recent price rise in Hedera’s HBAR token, which saw it surge over 100% in a single day, was caused by a misconception of investing firm BlackRock’s participation with tokenizing money on Hedera’s blockchain.
However, Graham Rodford, CEO of Archax, has recently stated that while BlackRock was made aware of the fund tokenization by Archax, the asset management did not actively take part in the process. Archax tokenized the fund itself as part of its effort to issue tokenized fund shares utilizing Hedera’s blockchain.
The misconception occurred from an HBAR Foundation post suggesting that Archax and Ownera had tokenized BlackRock’s ICS US Treasury Fund on Hedera’s network. Many in the cryptocurrency world believed this to suggest BlackRock itself was directly engaging in the endeavor.
Rodford noted that despite not needed, Archax alerted BlackRock ahead in the interests of openness and creating confidence, as the firm believes in open communication with fund managers regarding such activities.
Read also: BlackRock’s Bitcoin ETF IBIT Gains Top 10 Status with Extended Inflows
