Chris O’Connor, creator of the Cardano Ghost Fund (DAO), blasted the Hedera Foundation for deceiving the public when the crypto community learned about the issue.
The value of HBAR, Hedera’s native token, surged by about 100% in the last day. The announcement that BlackRock, a well-known American asset management firm, was going to tokenize its ICS US Treasury money market fund (MMF) on the Hedera network started off the rise.
On April 23, in reaction to this news, the price of HBAR surged from $0.087 to $0.175 with a trading volume of $1.48 billion, as reported by CoinMarketCap. But as of this writing, the digital asset’s market worth is $4.99 billion, and its price has retraced to $1.396%. There has been a 24-hour increase to $2.69 billion in trade volume.
Following confirmation that BlackRock had no hand in tokenizing the $22.3 billion Hedera fund, the price of HBAR fell.
On Tuesday, the network’s nonprofit overseer, the Hedera Foundation, posted on X (previously Twitter), leading to the misunderstanding. This article announces the tokenization of BlackRock’s ICS US Treasury Fund on the Hedera network by blockchain trading and infrastructure firms Archax and Ownera.
An accompanying video hinted at a collaboration between Ownera, Archax, and BlackRock; HBAR said that it would bring BlackRock “on-chain” in the film.
Unfortunately, many people, including crypto influencers, took the news the wrong way and started thinking that BlackRock was either involved in tokenizing the MMF or had teamed up with Archax and Ownera.
On Wednesday morning, the price of HBAR surged by 96% thanks to the video, which garnered over 2.1 million views and hundreds of reposts.
Chris O’Connor, creator of the Cardano Ghost Fund (DAO), blasted the Hedera Foundation for deceiving the public when the crypto community learned about the issue. He went on to say that the biggest asset manager in the world had nothing to do with tokenizing the MMF and that the whole thing was a Hedera blockchain experiment involving the secondary market tokenization of shares in a BlackRock fund.
“A Blackrock fund’s tokenized shares were part of an HBAR initiative that took place on the secondary market. Similarly, I can purchase a Rolex, snap a photo of it, and upload it to my X account. That Rolex “partnered” with me is nonsense,” O’Connor stated on X.
In addition, he expressed his anger at what he saw as “misleading marketing” strategies that inflated HBAR’s worth.
“I find it disgusting when companies use deceptive marketing to promote their token pieces. No big deal, $HBAR surged 35% on nothing. In the short days when those on the inside make a killing, guess who gets “Rekted”? Don’t be naive,” he wrote.
In the meanwhile, HBAR has surged to about 100%, but it has a long way to go before it regains its 2021 high, when it traded at $0.57 during the previous bull market.
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