DeFi Technologies Responds to Defamatory Report in the Face of Stock Turmoil

DeFi Technologies Inc., a provider of exchange-traded products (ETPs), has vigorously refuted the allegations contained in a recent report by CoinSnacks that resulted in a substantial decline in its stock value. On June 18, the share price of DeFi Technologies experienced a nearly 28% decline as a consequence of the contentious report, which alleged that the company’s stock was experiencing a surge for questionable reasons.

The Canadian ETP provider was accused of engaging in “questionable email campaigns” and employing crypto influencers to artificially exaggerate its stock value, which had increased by an astonishing 3,400% over the past year, according to CoinSnacks’ report, which was released on Tuesday. DeFi Technologies issued a vehement denial in response to these allegations.

DeFi Technologies Denounces Report

The firm denounced the report as “misleading” and “defamatory” in a press release dated June 19. The company claimed that the report was orchestrated by short-sellers with the intention of manipulating the market. The company contended that the report was intentionally fabricated to depress its stock price, as it was replete with inaccuracies and lacked substantive evidence.

According to Yahoo Finance, DeFi Technologies’ shares closed on Monday at 3.10 Canadian dollars, representing a year-to-date gain of nearly 320%, prior to the report’s dissemination. The share price experienced a 27.7% decline the following day, reaching 2.24 Canadian dollars. However, it briefly recovered to 2.30 Canadian dollars on Wednesday, June 19.

Aggressive Promotional Campaign by DeFi Technologies 

CoinSnacks claimed that DeFi Technologies had implemented an aggressive promotional campaign that included emails and crypto influencers in order to increase its stock. The report emphasized that a single newsletter had sent 15 emails referencing the company within a ten-day period. It also referenced endorsements from notable crypto figures, including Anthony Pompliano and Will Clemente, whose joint venture, Reflexivity Research, was acquired by DeFi Technologies in January.

“The issue for DeFi Technologies is that their aggressive promotional strategy has been too effective,” CoinSnacks indicated. “Between influencer endorsements, mentions on CNBC, and relentless email campaigns, there’s substantial evidence suggesting the stock’s rise isn’t based on genuine market factors.”

CoinSnacks’ Article Slammed

In response, the firm denounced CoinSnacks’ article as a “short and distort” tactic, containing “defamatory, selective, inaccurate, incomplete, and misleading statements.” The company hypothesized that the report was likely commissioned by short-sellers in order to lower its stock value and protect their positions.

CoinSnacks, on June 19, defended its reporting in a post on X, claiming that it has never been compensated by short-sellers and that none of its team members held any positions in the company’s stock.