Alameda Research Denies Being Affiliated With Reef Finance

Alameda Research denies having a relationship with Reef Finance and even went as far as advising not to do business with the company. However, a few days ago in our crypto news, we reported that Reef Finance got a $20 million investment from Alamada, what happened?

Reef Finance posted a weekly update where it said that Alameda Research invested $20 million into the project and a few publications praised the move, as good strategic cooperation between the companies. However, Sam Traubcco played down the relationship and accused Reef Finance of reneging on the $20 million deal while Alameda Research denies the claims made by Reef.

1. Alameda is not affiliated with REEF.
2. Alameda does not endorse REEF.
3. We agreed to an OTC trade with REEF; they immediately went to the press to brag.
4. They then reneged on the OTC trade.
5. We obviously do not recommend anyone do business with REEF in any way.

— Sam Trabucco (@AlamedaTrabucco) March 15, 2021

The price of Reef hit an all-time high today but a strong sell pressure tanked the price again. Reef Finance came onto the scene in 2019 with plenty of fanfare and the year later, it launched on Polkadot as well as on the Binance Launchpool. It’s described as a DEfi platform that offers cross-chain trading with the founders highlighting the painful experience of lending, staking, and trading that they wish to address with the protocol. Reef is aimed at offering noobies the best investment strategies and got to a solid start at first but a few incidents happened.

For clarity, BTW: of the 20m tokens we did buy (the original deal was for much more; REEF reneged on the remaining tokens), we are still in possession of the great majority, any claims about us immediately selling all the tokens are false. https://t.co/T738aqv63f

— Sam Trabucco (@AlamedaTrabucco) March 15, 2021

Last month, Reddit user u/Sisquitch claimed that the circulating supply of Reef increased and said that the response from the official Telegram of Reef was less than forthcoming:

 “Recently there was a sudden increase of the circulating supply by 0.5 Billion, equal to 2.5% of the total supply (20 billion). Given that there is no information about this on their website, concerned investors have obviously been asking a lot of questions. My main trepidation comes from the response from REEF to these questions.”

With that, Tabucco’s comments spiked further doubt as he claims that AR is not affiliated with Reef Finance and doesn’t endorse the project. He broke down details of the investment saying that it was an OTC trade deal. The community response seemed to accuse AR of wrongdoing by sitting on this information while others claimed that AR is profiting by selling at the ATH. Of course, Trabucco denied these claims and clarified that AR did by the tokens but less than the quantity that was initially agreed upon. As for the sitting on the info, Trabucco said that the renege happened a few minutes before the tweet.