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The publicly traded product provider DeFi Technologies Inc. experienced a nearly 28% drop in its shares on June 18 after criticizing a defamatory and misleading report that claimed its shares were not recovering for the right reasons. The crypto-focused news bulletin CoinSnacks published a report on June 18 stating that the Canada-based ETP provider had launched suspicious email campaigns.
What Is Happening with DeFi Technologies Shares?
The report claimed that the company paid crypto influencers to promote its stock, which had increased by 3,400% in the last twelve months. In a June 19 press release, DeFi Technologies stated that CoinSnacks’ report lacked value and accused it of being commissioned by short sellers to deliberately lower the stock; the CoinSnacks team denies this claim.
According to Yahoo Finance, DeFi Technologies’ stock price closed at 3.10 Canadian dollars on June 17, showing nearly a 320% gain since the beginning of the year. On June 18, it dropped by 27.7% to close at 2.24 Canadian dollars but slightly recovered to close at 2.30 Canadian dollars on June 19.
CoinSnacks’ report claimed that DeFi Technologies paid for an email and influencer campaign to promote its shares and that a news bulletin sent 15 emails mentioning the company over ten days. It also claimed that the company received promotional support from high-profile crypto figures Anthony Pompliano and Will Clemente. DeFi Technologies acquired their joint venture Reflexivity Research in January.
A Prompt Response to the Issue
DeFi Technologies criticized CoinSnacks’ short and skewed report in a press release, calling it defamatory, selective, false, incomplete, and misleading, containing speculations and insinuations. The company believed the news bulletin was commissioned by short sellers to lower the stock price to cover short positions.
The CoinSnacks team defended their report in a June 19 post, stating that they were not paid by short sellers to cover any company and that no team member held positions in DeFi Technologies shares.
