BlackRock Nixes Tokenization Talks with Hedera, HBAR Tanks 35%

BlackRock, a leading asset management firm, has denied having any commercial partnership with Hedera Hashgraph or choosing its token (HBAR) for tokenizing any of its funds. This clarification follows a previous announcement by the HBAR Foundation, which suggested the tokenization of BlackRock's fund on Hedera, leading to a significant rally in HBAR's value. Following BlackRock's denial, HBAR's price experienced a sharp decline of over 35%, dropping from $0.1746 to $0.1143.

BlackRock Dismisses Tokenization Rumors with Hedera, HBAR Plummets 35%

Multinational investment management behemoth BlackRock has unequivocally denied any commercial affiliation with Hedera Hashgraph, dismissing earlier claims that it had chosen Hedera for tokenizing its funds. This clarification comes after a surge in the value of Hedera's native token, HBAR, following an announcement by the HBAR Foundation that Blockchain firms Archax and Ownera had tokenized BlackRock's ICS U.S. Treasury Fund on the Hedera platform.

BlackRock's emphatic statement, "BlackRock has no commercial relationship with Hedera, nor has BlackRock selected Hedera to tokenize any BlackRock funds," effectively quashed any speculation of its direct involvement in the tokenization process.

The HBAR Foundation's initial announcement, which garnered significant attention with over 2.9 million views and 3,200 reposts within 36 hours, fueled a surge in HBAR's value by over 100%, from $0.0880 to $0.1759. However, upon BlackRock's denial, HBAR plummeted by over 35%, from $0.1746 to $0.1143.

Archax, one of the firms involved in the alleged tokenization effort, clarified that it had clients who expressed interest in investing in the BlackRock fund. To facilitate this, Archax established an account with BlackRock and tokenized shares of the asset management firm's money market fund on the Hedera network.

Despite Archax's explanation, BlackRock's categorical denial has shattered any illusion of its direct involvement in the tokenization process. The subsequent plunge in HBAR's value underscores the fragility of market sentiment when rumors are not substantiated by concrete facts.

Industry experts emphasize the importance of due diligence and skepticism when evaluating investment opportunities linked to established financial institutions such as BlackRock. Verifying information from multiple reputable sources and exercising caution in interpreting announcements can help investors avoid disappointment and potential losses.