TLDR
- DeFi Technologies’ stock dropped nearly 28% after a CoinSnacks report claimed the company’s stock wasn’t rallying for the right reasons.
- The report alleged that DeFi Technologies launched questionable email campaigns and paid crypto influencers to promote the stock.
- DeFi Technologies slammed the report as “defamatory” and “misleading,” accusing it of being commissioned by short-sellers to tank the stock.
- The company claimed it was approached by a Canadian investment bank with a peculiar bought-deal offer, suspecting potential market manipulation by short-sellers.
- DeFi Technologies highlighted its strong financial performance and fundamentals, arguing that the CoinSnacks report failed to address these aspects.
DeFi Technologies, a Canada-based exchange-traded product (ETP) provider, has found itself embroiled in a controversy following the publication of a report by crypto-focused newsletter CoinSnacks.
The report, released on Tuesday, claimed that DeFi Technologies’ stock, which had seen a 3,400% increase over the past twelve months, wasn’t rallying for the right reasons. It alleged that the company had launched questionable email campaigns and paid crypto influencers to promote the stock.
The publication of the report had an immediate impact on DeFi Technologies’ share price, causing it to plummet by nearly 28% on June 18.
The company swiftly responded to the allegations, slamming the report as “defamatory” and “misleading” in a press release on June 19.
DeFi Technologies accused CoinSnacks of being commissioned by short-sellers to deliberately tank the stock, an allegation that CoinSnacks has denied.
According to DeFi Technologies, the report lacked merit and contained selective, inaccurate, and misleading statements about the company’s practices and financial condition.
The company also revealed that it had been approached by a Canadian investment bank with a peculiar bought-deal offer of US$15 million, despite having a strong treasury.
DeFi Technologies claimed that the bank had admitted in court to having a history of acting for short-sellers and that a hedge fund, which had never met with the company, was interested in the deal.
Suspecting potential market manipulation by short-sellers, DeFi Technologies contacted the Canadian Investment Regulatory Organization, warning them of the possibility of a short-seller report.
The company also highlighted its strong financial performance and fundamentals, arguing that the CoinSnacks report failed to address these aspects.
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