In a surprising twist, the native token of the decentralized ledger platform Hedera was born. HBAR, experienced a significant price surge of over 100% during the early hours of Tuesday. HBAR started at a low of $0.0875 and surged, reaching $0.1821 by Wednesday.
The sudden surge was triggered by news. BlackRock’s Tokenized FundBUIDL has raised high expectations among HBAR investors regarding a potential collaboration between the prominent asset manager and the Hedera Protocol.
Aren’t you connected directly to Hedera?
BUIDL, launched by BlackRock in March 2024, operates as a tokenized fund. Ethereum BlockchainProvides US dollar returns through tokenization.
Initially presentation This caused confusion among investors who mistakenly believed that BlackRock would tokenize their funds directly on the Hedera network. This misunderstanding led to a significant spike in HBAR prices.
Upon closer examination of this announcement, it became clear that while the initial reaction to the news was notable, there was no direct connection between BlackRock and Hedera.
Cryptocurrency analysts using the pseudonym ‘CrediBull’ on social media site Emphasize BlackRock’s explicit permission was not required to list tokenized versions of the funds.
BlackRock tokenizing Hedera was not a deliberate decision. Rather, the network’s existing platform was free to tokenize one of BlackRock’s funds. But for analysts, the fact is that Hedera’s platform is one of the first. tokenize BlackRock funds reflect the platform’s leadership in its field.
The analyst clarified the misunderstanding.
further investigation Open to the public Archax, the company that runs the tokenized BlackRock funds on Hedera, is a portfolio company of ABRDN Investments, the UK’s largest asset manager, with approximately $500 billion in assets under management (AUM).
CrediBull also highlights that BlackRock is the fourth-largest shareholder in ABRDN. Notably, about 10 months ago, Archax tokenized one of ABRDN’s money market funds ahead of the launch of the BlackRock fund.
not interview ABRDN’s Head of Digital Assets clarified Archax’s involvement in the tokenization process. A “Distribution Agreement” has been signed allowing tokenization to proceed. A similar agreement with BlackRock would mean that the asset manager would endorse the product.
Ultimately, our interview with ABRDN’s Head of Digital Assets highlights the fact that important players are leveraging and contributing to Hedera’s growth behind the scenes.
After the situation became clear, HBAR price went back to $0.1199. Nonetheless, it has maintained an 8% gain in the last 24 hours and an impressive gain of almost 60% in the last 7 days.
CoinGecko data highlights a significant surge in HBAR. trading volume, up more than 1,100% in the past few days. This surge in trading volume is indicative of widespread confusion sparked by the initial news announcement.
Featured image from Shutterstock, chart from TradingView.com
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Source: NewsBTC.com