BlackRock rumor quickly pushes Hedera price 100% higher, correction sees crypto coin drop 75%

The biggest name to enter the world of crypto this year is undoubtedly BlackRock. The largest investment fund in the world officially started selling a crypto-related product on January 10 with the launch of their iBit fund, allowing the ‘boomer generation’ to purchase Bitcoin without opening a crypto portfolio.

All they had to do was buying a stock promoted by BlackRock, a name they trust.

A small cryptocurrency, Hedera, launched a press release earlier this week suggesting that BlackRock was part of a future project of theirs. The price of Hedera exploded, until BlackRock itself provided a correction.

Namedropping

In the United States, namedropping in commercial presentations is very common. You mention the name of a certain company as a possible customer or investor and its name recognition makes it easier to attract new investors.

A good example of this is the share price of the (originally British) company ARM Holdings, listed under the ticker ARM. This company specializes in providing software and pieces for larger chip companies such as Nvidia and AMD. ARM’s share price is actually much too high compared to the company’s profits. However, because major market players such as Alphabet (the company behind Google) and Meta (formerly known as Facebook) have made expensive investments in ARM and clearly hope to one day take over the company themselves, the share price of ARM has risen sharply this year.

The same thing happened to a small cryptocoin called Hedera this week, although it is still not clear whether it was intentional or not. A Hedera press release suggested that a possible partnership with BlackRock, the investment fund led by Larry Fink, was in the works. Investors jumped on it and sent Hedera’s stock 100% higher in a matter of hours.

#HBAR
BlackRock tokenizes Money Market Fund on Hedera.
Congratulations holders. 👏👏 pic.twitter.com/hiNq7Myzgr

— Ashley PROSPER (@AshleyPROSPER1) April 24, 2024

BlackRock’s press representative was asked about a possible collaboration with Hedera the next day and immediately quashed the rumor. Since then, the price of Hedera has fallen 75%.

👀BlackRock says it didn’t choose Hedera to tokenize shares of its $22B money market pic.twitter.com/bA8Li2nqVf

— Crypto Crib (@Crypto_Crib_) April 25, 2024

Always do your own researched before being fooled by namedropping.