DeFi Technologies Faces Allegations

Exchange-traded product provider DeFi Technologies Inc. is in trouble. A report by the crypto-focused newsletter CoinSnacks has caused its stock value to drop significantly.

The report accused DeFi Technologies of unethical promotional practices. DeFi Technologies has strongly refuted these claims.

CoinSnacks' Controversial Report

CoinSnacks released a report on Tuesday targeting the Canada-based ETP provider. The report claimed DeFi Technologies launched 'questionable email campaigns' and paid influencers to promote its stock. It said DeFi's stock price had increased by 340x in 12 months.

DeFi Technologies responded to the report, saying it is defamatory. They accused CoinSnacks of being commissioned by short-sellers aiming to tank the stock. CoinSnacks has denied these allegations.

Stock Value Plummets

On Monday, DeFi Technologies' share price was 3.10 Canadian dollars. By Tuesday's close, it had dropped nearly 28% to 2.24 Canadian dollars. The stock slightly recovered to 2.30 Canadian dollars by Wednesday, June 19.

Allegations of Unethical Promotion

CoinSnacks claimed that DeFi Technologies paid for an intense email and influencer campaign to boost its stock.

The report alleged that one newsletter sent 15 emails mentioning the company over ten days. It also claimed high-profile crypto figures, like Anthony Pompliano and Will Clemente, were involved. DeFi Technologies acquired their joint venture, Reflexivity Research, in January.

'The problem for DeFi Technologies is that their promotional IR blitz has worked out so well,' CoinSnacks wrote.

DeFi Technologies' Strong Denial

In their press release, DeFi Technologies slammed the report's 'defamatory, selective, inaccurate, incomplete and misleading statements.' They suggested that the report was part of a coordinated effort by short-sellers to depress their stock valuation.

CoinSnacks defended its report in a June 19 X post, stating, 'We are not currently, nor have we ever been, paid by a short-seller to cover any company.' They added that none of their team held positions in DeFi Technologies stock.

Peculiar Bank Offer

DeFi Technologies claimed a Canadian investment bank approached them with a peculiar 'bought-deal offer of US$15 million.' Despite having a solid treasury, the offer seemed odd.

The company stated that the bank had a history of acting for short-sellers. They reported the incident to the Canadian Investment Regulatory Organization, warning of potential market manipulation.

DeFi Technologies continues to navigate through these turbulent waters, aiming to clear its name and stabilize its stock.