As a researcher with experience in financial markets and securities analysis, I find the ongoing saga between DeFi Technologies and CoinSnacks intriguing. The rapid surge in DeFi Technologies’ stock price over the past year has indeed raised eyebrows, and the initial report by CoinSnacks questioning the legitimacy of this growth was a natural response. However, the firm’s subsequent accusations of short and distort tactics employed against it are concerning.
As an analyst, I’d rephrase that to: In one of its earlier publications, CoinSnacks raised concerns about DeFi Technologies’ stock surge, implying potential questionable marketing tactics used by the ETP provider. Notably, DeFi Technologies’ stock price experienced a remarkable increase of over 3,400% in the past year. The newsletter pointed to influencer promotions and targeted email campaigns as possible indicators of manipulation. Moreover, the report emphasized how the company gained significant benefits from favorable mentions by influential crypto figures Anthony Pompliano and Will Clemente. Their joint business venture, Reflexivity Research, was acquired by DeFi Technologies in January.
DeFi Technologies Blames “Short and Distort” Tactics for Stock Plunge
DeFi Technologies has countered CoinSnacks’ accusations in a press statement, labeling them as defamatory, misleading, and unfounded. The company asserts that these claims are part of a short-and-distort strategy used by short-sellers to artificially depress the stock price.
Interestingly, the company also made some counter allegations of its own, aiming to buttress its short and distort claims. In its reveal, it said it was recently approached by a Canadian investment bank with an offer to purchase $15 million worth of shares. According to DeFi Technologies, it found this offer “peculiar” considering its strong financial position at this time. Moreover, the timing is also suspicious. Hence, it is suspicious that the bank may have acted on behalf of short-sellers.
As a researcher examining the situation surrounding CoinSnacks, I’ve noticed that they have made efforts to clarify any misunderstandings regarding their role in recent events. In a previous publication on platform X, they explicitly stated that they do not collaborate with short-sellers and emphasized that their findings were derived solely from factual observations. The post went on to explain:
“We are not currently, nor have we ever been, paid by a short-seller to cover any company.”
Once more, this predicament highlights the persistent conflict between publicly traded corporations and short-sellers. Each party alleges manipulation against the other.
At the time of this writing, the share price of DeFi Technologies had decreased by 28.76% over the past 24 hours, reaching a value of $1.61.
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2024-06-20 11:05