Bittime – The price of Hedera's HBAR token rose drastically, but then fell 25%. This price increase was triggered by a misunderstanding of the announcement from the HBAR Foundation.
Misconceptions That Result in Price Increases
HBAR Foundation, a backer of the Hedera ecosystem, announced on Tuesday that a stake in money market fund ICS US
BlackRock's Treasury has been tokenized on the Hedera blockchain through collaboration with Archax.
Hedera supporters on social media immediately concluded that BlackRock chose Hedera to tokenize its funds, causing the price of the HBAR token to jump more than 107%.
Check Today's Crypto Market:
Price Clarification and Correction
However, in reality, even though the shares in BlackRock's money market fund have been tokenized, BlackRock itself is not the party carrying out the tokenization.
This may be why the announcement from the HBAR Foundation was careful to state that the fund was “tokenized” rather than “BlackRock has tokenized.” After the market realized this, the price of HBAR fell 25%.
A BlackRock spokesperson told CoinDesk late Wednesday: “BlackRock has no commercial relationship with Hedera.
BlackRock also did not select Hedera to tokenize any BlackRock funds. As we have previously, BlackRock will communicate directly with the public about the development of our digital asset strategy."
Response from Archax
Archax CEO, Graham Rodford, responded to criticism regarding misleading marketing from Hedera backers by saying: "It is true that Archax chose to place the fund in Hedera."
Also read: Hedera (HBAR) rises and falls drastically due to misunderstanding of BlackRock report
BlackRock and Asset Tokenization
BlackRock entered the real asset (RWA) tokenization sector last month when it launched the USD Institutional Digital Liquidity Fund on Ethereum.
HBAR Technical Analysis
Even though the price of the HBAR token still rose 61% in the last 24 hours, the market depth for HBAR is still relatively thin.
The total accumulated buys or bids on Binance and Upbit within 2% of the current price, 14 cents, only come to around $900,000. According to CoinMarketCap, HBAR's trading volume over the past 24 hours exceeded $2.6 billion.
Data from CoinGlass shows that the funding rate on all HBAR derivatives exchanges is negative.
This means that the party holding the short position has to pay the party holding the long position, which indicates bearish sentiment in the market. The ratio between long and short positions on Binance is currently 0.85.
Be Wary of Inaccurate Information
This incident is an important reminder to always be careful about the information circulating, especially on social media.
Make sure to verify the information before making an investment decision. Read news from credible sources and do in-depth research before investing in certain crypto assets.
The Importance of Understanding Announcements
Pay attention to the use of words in official announcements. In this case, the HBAR Foundation is careful to say that the fund is “tokenized” and not “BlackRock has tokenized.”
Careful investors should be able to understand these differences and avoid misunderstandings.
Also Read: Hedera (HBAR) and Ghana Collaborate on Promising CBDC Initiative
Beware of Misleading Trading Signals
Promotions from crypto advocates on social media are often biased and aimed at manipulating prices. Investors must be careful of trading signals that are too specious and not supported by strong fundamental analysis.
Managing Investment Risk
The crypto market is volatile and high-risk. Investors need to implement good risk management. Don't invest funds that exceed your financial capabilities and don't get carried away by market euphoria.
Set stop-losses to limit losses and diversify your investment portfolio.
Also Read How To Buy Crypto:
Conclusion: Potential for HBAR Volatility Ahead
The combination of high short interest and minimal liquidity can create volatile trading periods for HBAR.
The price of HBAR has the potential to return to normal levels or even experience a short squeeze, considering that open interest (total open contracts) for HBAR increased rapidly by 442% to $160 million in the last 24 hours.
Hedera (HBAR) experienced a price spike followed by a sharp correction due to misunderstandings in the market.
This incident is a valuable lesson for investors to always be alert, do research, and implement smart investment strategies.
Cara Beli Hedera (HBAR) di Bittime
You can buy and sell Hedera (HBAR) easily and safely via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Hedera (HBAR) is available on Bittime with the market pair HBAR/IDR. To be able to buy HBAR IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn the complete guide on how to buy Hedera (HBAR) at Bittime.
Monitor price chart movements for Hedera (HBAR), Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other cryptos to find out today's crypto market trends in real-time on Bittime.
Read Also:
DOGE will Reach 0.2? Analysts expect Dogecoin to be bearish
4 Hidden Gem Altcoins Ready to Shine After the Bitcoin Halving
As many as 98% of Central Banks Review CBDC, According to WEF
DISCLAIMER: This article is informational and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.