The world of cryptocurrency is filled with as many complexities and controversies as traditional entities like Wall Street. A fresh fiasco is involving two streamlined crypto facilities providers REEF Finance and Alameda Research. Last week, a tweet from Alameda Research CEO- Sam Trabuco confirmed an investment of $20 million in REEF Finance. Alameda Research is a quantitative trading firm that runs in circles like Wall Street and Silicon Valley to provide liquidity into crypto markets globally.
The mention of Alameda Research’s major investment sparked the interest and attention of various outlets in the direction of REEF Finance. As per the initial news release, Alameda Research conducted a direct behemoth purchase of REEF tokens and acquired a major stakeholder position in the REEF ecosystem. In the aftermath of this investment, the price value of REEF tokens raised as much as 25%.
Why is Alameda Breaking off all Business Contacts with REEF?
The investment transactions were going smoothly between REEF and Alameda until Trabuco posted an inflaming tweet about the latest developments on Twitter. In a tweet made from @AlamedaTrabuco, the CEO denied all business affiliations with REEF and warned the customers not to engage in business with REEF Finance. According to the contents of this tweet, Alameda Research only engaged with REEF for an OTC trade (over-the-counter).
This unexpected development in the crypto-verse took the crypto community by storm. The smoke of this controversy reached far and wide, and many speculated that Alameda had started to dump REEF tokens to drive a price crash. Trabuco admitted later in an interview with the reporters that some REEF tokens have been sold, but the major cause of conflict in this matter is caused by REEF officials backing off from their investment contract terms.
Denko Mancheski- CEO of REEF Finance, has finally broken his silence on the controversy. He explained that REEF Research tried to contact Alameda last year and was refused by its management. However, in 2021, Alameda Research team member ‘VC Brian Lee’ approached Mancheski intending to integrate Solona with Serum and Raydium for Liquidity. Raydium provides on-chain liquidity services, while Serum and Solona are blockchain exchange platforms.
Brain Lee offered to secure REEF Tokens worth $20 million to fashion and work on different synergies. As per Mancheski, Alameda also had plans to make another investment of $60 million. However, after transferring the first tokens, Mancheski noticed that Alameda was dumping REEF tokens on the Binance exchange. When REEF stopped its sales to Alameda, Trabuco threatened to delist REEF from FTX. FTX is a trader-to-trader crypto exchange platform.