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News- Palpable tension is visible as the ongoing cross-fire of serious accusations between Reef Finance and Alameda Research continue
- The fight turned relatively ugly when a researcher at Alameda took to Twitter to discourage other companies from engaging with Reef Finance
- Reef has formally rebutted allegations levelled against them recently
When it comes to legalese matters, it is not uncommon for the two parties to resort to assertions of being victimized. The result of such feuds can often be blurry, with several insinuations levelled against opposite factions. And is very clearly visible in Reef Finance and Alameda Research’s recent quarrel.
Reef Finance and Almeda Researche’s backstories
Alameda Research (AR) and Reef Finance were partners in investment since September 2020. AR had ostensibly decided to invest close to $80 million in the project. Initially, Brian Lee, one among the AR’s VC team, had secured preliminary investment by buying $20 million worth of REEF tokens. Elated, the project had immediately publicized the news on the media. However, on March 15, a researcher at Alameda named Sam Trabucco posted a tweet. He negated any involvement other than simple OTC trades. He further went on to say that the project repudiated the contract and discouraged others from engaging in partnerships.
In response to these allegations, Reef’s CEO, Denko Mancheski, presented evidence that the tranche of REEF tokens had been rapidly offloaded to other exchanges, especially Binance. As for the media’s announcement, Reef maintains that Lee had approved the report jointly with their staff. This led to a fallout between the two firms.
The aftermath of the fallout
Understandably, the rest of the contract valued at about $60 million did not fall through. Denko states that the reason was AR’s refusal to sign a binding legal contract and rather to want to move forward with the trade via implied trust. Certain tweets have emerged, which points to an irked Alameda’s alleged use of force to threaten Reef Finance of dire consequences, including its tokens’ delisting on other DEXs.
Analysts such as Adam Cochran notes that Sam’s allegations regarding the firms’ partnerships were essentially accurate as an OTC trade does not imply a business partnership without any supporting documents. However, he remained tight-lipped on other issues. REEF tokens have also taken a hard hit of about 50% after news of its fallout with AR broke out.
Whatever be the case, one will have to wait and see if and when the truth will emerge.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
