DeFi
DeFi Technologies shares fall 28% following CoinSnacks report
TLDR
- Shares of DeFi Technologies fell nearly 28% after a CoinSnacks report claimed the company’s stock was not rallying for the right reasons.
- The report alleges that DeFi Technologies launched questionable email campaigns and paid crypto influencers to promote the stock.
- DeFi Technologies called the report “defamatory” and “misleading,” accusing it of being tasked by short sellers to drive the stock down.
- The company claimed it was approached by a Canadian investment bank with a particular underwriting 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 Canadian exchange-traded product (ETP) provider, has found itself embroiled in controversy following the publication of a report by the crypto-focused newsletter CoinSnacks.
The report, released on Tuesday, claimed that shares of DeFi Technologies, which saw a 3,400% increase over the past twelve months, were not recovering for the right reasons. He alleged that the company launched questionable email campaigns and paid crypto influencers to promote the stock.
The release of the report had an immediate impact on the DeFi Technologies stock price, causing it to fall by almost 28% on June 18.
The company quickly responded to the allegations, calling the report “defamatory” and “misleading.” in a press release on June 19.
DeFi Technologies has accused CoinSnacks of being instructed by short sellers to deliberately drive the stock down, an allegation that CoinSnacks has denied.
According to DeFi Technologies, the report lacked substantiation 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 particular underwriting offer of US$15 million, despite having strong cash flow.
DeFi Technologies claimed that the bank admitted in court to acting on behalf of short sellers and that a hedge fund, which had never met the company, was interested in the deal.
Suspecting potential market manipulation by short sellers, DeFi Technologies contacted the Investment Regulatory Organization of Canada, 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.