Graham Rodford, the CEO and co-founder of Archax, recently addressed concerns on the X platform concerning BlackRock’s role in the tokenization of funds on Hedera’s blockchain. Following the surge in value of Hedera’s HBAR token after BlackRock announced its intention to tokenize the ICS US Treasury Fund, there were questions about the extent of BlackRock’s participation in this initiative.
If we choose to tokenize our investment, it may not be necessary for us to consult the investment manager; however, we value long-term relationships with them. The investment managers, such as abrdn and Blackrock, were informed about our tokenization process taking place on Hedera, yet the extent of their involvement can differ.
— Graham (@Grodfather) April 24, 2024
Hedera (HBAR) Price Trend
The initial announcement from the HBAR Foundation X blog disclosed that Archax and Ownera had carried out the tokenization of a BlackRock fund on the Hedera network. Unfortunately, there was some misunderstanding within the crypto community who assumed incorrectly that BlackRock itself was involved in the tokenization process.
An incorrect perception about BlackRock’s role in Hedera led to market excitement, causing HBAR token value to surge by 100% within a day. The price surge was fueled by the belief of a close partnership between the world’s largest asset manager, BlackRock, and Hedera’s blockchain.
Yet, it turned out that BlackRock was just informed about the situation, not directly involved, which dampened initial enthusiasm. At present, a selling frenzy is taking place in the HBAR market, causing the price to plummet by 22% from its peak of $0.1776 and trade at $0.125 as of this writing.
Archax’s Role and Decision
Regarding the confusion, Graham Rodford explained that Archax, not BlackRock, was responsible for tokenizing the fund on the Hedera blockchain. Although BlackRock was informed about this project, they didn’t take part in the tokenization process themselves.
Rodford noted that Archax had converted the fund into digital tokens as part of their plan to distribute tokenized fund shares. In this instance, they intended to utilize the Hedera blockchain for the token share offering.
Though not obligated to do so, Archax chose to notify the investment manager about their tokenization plans. This action aligns with Archax’s commitment to transparency and aims to foster long-term relationships. Rodford underscored the importance of maintaining open communication with investment managers and clearing up any confusion regarding tokenization projects. By informing the investment manager beforehand, Archax hoped to encourage trust and openness within the sector.
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2024-04-25 04:59