Hedera's HBAR Doubles, Then Drops 25%, as BlackRock Links Decline
Hedera announced on Tuesday that BlackRock's US Treasury money market fund had been tokenized on its blockchain.
BlackRock was not directly involved in the launch of a tokenized money market fund on Hedera.
HBAR funding rates are negative as traders look to short the recent rally.
Liquidity remains tight relative to volume, indicating a volatile trading period ahead.
Hedera's native HBAR token surged more than 107% on Tuesday, then fell 25% as investors believed BlackRock was involved in a fund tokenization project on the Hedera blockchain.
On Tuesday, Hedera announced that BlackRock's ICS US Treasury money market fund had been tokenized on the Hedera blockchain in collaboration with Archax. Hedera supporters on social media began claiming that BlackRock chose Hedera to tokenize its fund, although this was not the case.
Archax CEO Graham Rodford said that "it was indeed Archax's choice to put [the fund] into Hedera", in response to criticism of Hedera's misleading marketing.
