DeFi Technologies Refutes CoinSnacks Report, Alleges Short Seller Manipulation
Summary:
Exchange-Traded Products provider DeFi Technologies disputes a recent report by CoinSnacks that ascribes the company's soaring stock value to questionable promotional methods. The report, which led to a nearly 28% drop in DeFi's stock, alleges the company paid for influencer campaigns and email marketing. DeFi denounced the report as misleading and defamatory, suggesting it was a short-seller strategy to depress their valuation. CoinSnacks responded, denying these allegations and maintaining the report's integrity. Afterwards, DeFi revealed having been unexpectedly approached for a seemingly strange US$15 million deal by a bank known for affiliations with short-sellers, hence reporting potential market manipulation by short-sellers to the Canadian Investment Regulatory Organization.
DeFi Technologies Inc., a provider of Exchange-Traded Products (ETP), condemned a CoinSnacks report earlier this week claiming that the company's stock rally was based on "questionable" activities. This report considerably affected the company's stock, driving it down by nearly 28% on June 18. CoinSnacks, a crypto-centric news outlet, stated that the ETP provider, based in Canada, used questionable promotional tactics such as paid crypto influencers and email marketing, which led to a 3,400% rise of their stock in the last year.
In response to these claims, DeFi Technologies rejected the report in a press release on June 19, declaring it was without any substantial base and accusing it of contributing to the calculated move of short-sellers to plummet its stock's value - an allegation CoinSnacks refutes.
On Monday, June 17, DeFi Technologies' stock was valued at 3.10 Canadian dollars per share, marking a 320% increase since the start of 2021 according to data from Yahoo Finance. Following the CoinSnacks' publication, the stock value plummeted to 2.24 Canadian dollars at the end of Tuesday but saw a slight recovery the next day, June 19, closing at 2.30 Canadian dollars. Even with this decline, the company's stock value has grown over 200% in 2021.
CoinSnacks alleges DeFi Technologies used orchestrated influencer endorsements and promotional emails to elevate their stock, providing an instance of a newsletter circulating 15 emails about the company within a span of ten days. CoinSnacks pointed out that this elaborate marketing campaign, which succeeded in boosting its profile and causing a stock rally, might not have been driven by the right reasons.
DeFi Technologies hit back at CoinSnacks, criticising their 'short and distort' report, categorising its contents as misleading, speculative and defamatory. They speculated the news outlet's report might have been actuated by short-seller's intent to depreciate their stock to cover short positions.
In response, CoinSnacks maintained the legitimacy of their report on June 19, stating they've neither been funded by a short-seller to cover a company nor held positions in DeFi Technologies' stock.
The ETP provider revealed they were approached unbidden by a Canadian investment bank about a 'peculiar' deal worth US$15 million, perplexing considering the company's strong financial standing. The bank confessed of past affiliations with short-sellers, and apparently a hedge fund, a stranger to the company, was showing keen interest in the deal.
In light of this offer, DeFi Technologies alerted the Canadian Investment Regulatory Organization about possible market manipulation by short sellers and potential emergence of another short-seller report.
Published At
6/20/2024 8:50:56 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.