According to Odaily, CoinSnacks recently released a report questioning the reasons behind the stock price surge of DeFi Technologies (stock code: DEFI). CoinSnacks suggested that the company's promotional activities, including paid emails and influencer campaigns, increased media exposure. The company also received support from Anthony Pompliano and Will Clemente, cryptocurrency investors whose market analysis company, Reflexivity Research, was acquired by DeFi Technologies in January. CoinSnacks stated, 'With the push of KOLs, mentions on CNBC, email promotions, and high-profile marketing activities, there is strong evidence that the stock's rise is not for the right reasons.'
Before the report was released on Monday, DEFI reported 3.3 Canadian dollars, a 202% increase since May 31. By Tuesday's close, the stock had plummeted 35% to 2.24 Canadian dollars per share. DeFi Technologies responded to CoinSnacks' report at a public press conference on Wednesday, calling it 'defamatory, selective, inaccurate,' and containing 'misleading statements' about the company's practices and financial condition. The company speculated that the report might have been commissioned by short sellers hoping to depress the stock price.
DeFi Technologies stated that on June 10, a Canadian investment bank approached the company with a $15 million acquisition offer. Considering the company's newly acquired financial strength, this was a very low number. On the same day, the company reported that its funds alone were worth $60 million, of which $7.9 million had been converted into Bitcoin. DeFi Technologies further pointed out, 'The company believes that the coordinated operation of short sellers and the publication of misleading reports about listed companies constitute market manipulation.'
Previously on June 10, DeFi Technologies (OTCMKTS: DEFTF) announced that it would use Bitcoin as its main treasury reserve asset, adding a total of 110 BTC, worth approximately $7.7 million.
