DeFi Technologies Inc., a Canadian company issuing DeFi exchange-traded products (ETPs), has vehemently denied allegations of questionable practices aimed at artificially inflating its stock price.
The response comes after a report from the crypto-focused newsletter CoinSnacks, which accused the company of engaging in email campaigns and paying influencers to promote its stock, leading to a 3,400% surge in its value over the past year.
Notably, following the publication of a report on June 18, DeFi Technologies’ stock plummeted by nearly 28% and closed at 3.10 CAD. The decline continued the following day; the stock dropped to 2.24 CAD, representing a 27.7% decline, before slightly recovering on Wednesday, closing at 2.30 Canadian dollars, according to Yahoo Finance.
In a recent press release, DeFi Technologies denounced the report as “defamatory” and “misleading,” accusing CoinSnacks of being “commissioned by short-sellers” to manipulate the stock price – a claim that CoinSnacks has refuted.
The CoinSnacks report had alleged that DeFi Technologies used its acquisition of Reflexivity Research, a joint venture involving high-profile crypto figures Anthony Pompliano and Will Clemente, to boost its publicity through promotional emails and endorsements.
“Between the influencer pumps, getting mentioned on CNBC, the email campaigns, and Pomp pomping, there is now strong evidence that the stock isn’t rallying for the right reasons,”
the CoinSnacks report read.
DeFi Technologies criticized the CoinSnacks report as a “short and distort type” of report and claimed it was part of a coordinated effort by short-sellers to depress its stock price.
The company also revealed that a Canadian investment bank had approached it for a potential bought-deal offer of US$15 million, which it found suspicious due to its strong treasury position and the potential for market manipulation by short-sellers.
DeFi Technologies stated that it had contacted the Canadian Investment Regulatory Organization about the bank’s offer and warned of the potential for market manipulation by short-sellers.
However, CoinSnacks has defended its report, stating that no short-sellers had paid for it and that its team did not hold any positions in DeFi Technologies stock.
“We stand by our reporting and we’ll leave it at that. We welcome anyone to further investigate and make their own judgment”, CoinSnacks noted.
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