DeFi Technologies Denounces Misleading Report that Caused Its Stock to Plummet by 28%

UTC by Mayowa Adebajo · 2 min read
DeFi Technologies Denounces Misleading Report that Caused Its Stock to Plummet by 28%
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DeFi Technologies Inc., a Canadian company specializing in exchange-traded products (ETPs), has taken a swipe at crypto newsletter CoinSnacks. The company also made some counter allegations of its own, aiming to buttress its short and distort claims.

In its earlier publication, CoinSnacks queried DeFi Technologies’ stock surge, alleging that the ETP provider might be employing questionable marketing tactics. Notably, DeFi Technologies’ stock price had gone through the roof over the past twelve months surging 3,400% over the period. The newsletter pointed to tactics like influencer promotions and targeted email campaigns as evidence of potential manipulation. The report further highlighted how the company benefitted from positive mentions by prominent crypto figures Anthony Pompliano and Will Clemente, whose joint business venture, Reflexivity Research, was acquired by DeFi Technologies in January.

DeFi Technologies Blames “Short and Distort” Tactics for Stock Plunge

DeFi Technologies has now fired back at CoinSnacks. In a press release, the firm responded to the allegations, claiming they are not only “defamatory” but also misleading and untrue. The firm says it is a “short and distort” tactic employed by short-sellers aiming to manipulate the stock price downwards.

Interestingly, the company also made some counter allegations of its own, aiming to buttress its short and distort claims. In its reveal, it said it was recently approached by a Canadian investment bank with an offer to purchase $15 million worth of shares. According to DeFi Technologies, it found this offer “peculiar” considering its strong financial position at this time. Moreover, the timing is also suspicious. Hence, it is suspicious that the bank may have acted on behalf of short-sellers.

CoinSnacks, meanwhile, has also attempted to clear its name. In an earlier post on X, they denied any involvement with short-sellers and claimed their report was based on factual observations and nothing more. The post read partly:

“We are not currently, nor have we ever been, paid by a short-seller to cover any company.”

This situation once again shines the light on the constant struggle between publicly traded companies and short-sellers, with each pointing accusing fingers of manipulation at each other.

As of publication, DeFi Technologies stock price was down 28.76% in the last day, selling for $1.61.

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