BlackRock has announced that it does not have any commercial relationship with Hedera Hashgraph and has not selected it as a platform to tokenize any of its funds, including its $22 billion money market fund.

Hedera's Token Price Skyrockets and Then Crashes

The price of Hedera's token (HBAR) skyrocketed by over 100% on Tuesday after the HBAR Foundation announced that blockchain firms Archax and Ownera had tokenized BlackRock's ICS U.S. Treasury Fund on Hedera. However, after reaching a high of $0.176 on April 24, HBAR fell by 32.8% to $0.1134 as of the time of writing, according to CoinGecko.

BlackRock Clarifies Its Involvement in the Tokenization Effort

A spokesperson from BlackRock clarified that the firm did not play an active role in the tokenization effort. "BlackRock has no commercial relationship with Hedera nor has BlackRock selected Hedera to tokenize any BlackRock funds," the spokesperson said.

BlackRock's Direct Communication with the Public

The BlackRock spokesperson emphasized that the company will communicate directly with the public regarding its digital asset strategy. The HBAR Foundation's announcement received significant attention, with over 2.9 million views and 3,200 reposts. However, some cryptocurrency influencers misunderstood the message.

Archax CEO Clarifies the Situation

Archax CEO Graham Rodford clarified that it was his firm's decision to put shares of BlackRock's money market fund on Hedera. Rodford explained that Archax had clients interested in investing in the fund, and they opened an account at BlackRock to do so.

Archax's Relationship with BlackRock

Rodford emphasized that Archax has a good relationship with BlackRock and that the firm's involvement was limited to checking the press release. Despite the price pump, HBAR is still down over 78% from its September 2021 all-time high of $0.57, according to CoinGecko.