Dave Portnoy, the outspoken founder of Barstool Sports, is no stranger to controversy. This time, his foray into the meme coin sector has left a trail of financial wreckage and confusion.
The case adds to the flurry of controversies around new token launches, drawing debates about ethics in crypto trading.
Dave Portnoy and the Rug Pulls to the Community
It all started when Portnoy launched GREED, a meme coin he called a collectible token. According to an analyst, Portnoy bought 357.92 million GREED tokens, which was 35.79% of the total amount.
Then, he quickly sold all of his tokens, causing the price of GREED to drop by 99%. Even though the price crashed, Portnoy still made about $258,000 in profit.
While Portnoy made money, others lost a lot. One person lost $101,000 in just three hours. They had bought GREED with 911 SOL (worth $153,000) but sold it for only 309 SOL ($52,000) after the price fell.
“Dave Portnoy’s sell-off made this person lose $101K on GREED in 3 hours! They spent 911 SOL ($153K) to buy GREED and sold it for 309 SOL ($52K), losing 602 SOL ($101K),” the analyst said.
This huge drop in value made people wonder if the market was being manipulated and whether it was fair for one person to hold so many tokens.
This isn’t the first time Portnoy has been involved in a crypto problem. Just before launching GREED, he was in a scandal about another meme coin called LIBRA. Portnoy was offered over 6 million LIBRA tokens before it launched, but he returned them after being told he couldn’t say he received them.
“Dave Portnoy said he was offered over 6 million LIBRA tokens before the launch. But he sent them back after being told he couldn’t tell anyone he got them. There are probably many influencers who took tokens without saying anything. He is the only one who spoke up,” BlockNews shared on X.
Portnoy is one of the few influencers to admit being offered secret tokens, which makes people wonder if other influencers took them without telling anyone.
Portnoy’s Move From GREED to GREED2
Unfazed by the backlash, Portnoy launched GREED2, securing 268.25 million tokens, or 26.8% of the total supply.
“Don’t invest in this collectible coin with more than you can afford to lose. It will be volatile. I will not sell 1 penny until at least midnight EST or maybe never. Be careful,” he warned potential buyers in a post.
Despite the caution, many viewed the move as another potential “rug pull” waiting to happen, with some users on X voicing their frustrations.
“IDC [I don’t care] if he wants to buy and sell coins when he’s transparent about it Encouraging people to hold and not sell and saying he’s not going to sell, then full stacking, is disgusting,” Liv, a popular user on X, commented.
The user also highlighted Portnoy’s hypocrisy, criticizing other crypto figures while seemingly replicating similar tactics.
Promoting JAILSTOOL Amid Controversy
At the same time, Portnoy started promoting another token called JAILSTOOL, which was listed on the Kraken exchange. He said all his profits from GREED were put back into JAILSTOOL, and he promised never to sell it.
However, users quickly pointed out issues with his story. One person said that while Portnoy was involved with GREED, he had no direct role in JAILSTOOL, making people more suspicious about his real intentions and honesty.
“…You were behind GREED. But Jailstool wasn’t, and you also said you wouldn’t sell GREED, lol,” said crypto fan moonpie666.
In response to the criticism, Portnoy went on X to defend himself and talk about the bad side of the meme coin market.
“There are lots of people in the meme coin world who act like they’re the good guys, but all they want to do is take advantage of you and make easy money. The whole market is about greed. Go fight each other, but don’t complain to me if you lose money,” he said.
His strong comments didn’t stop the backlash, with critics accusing him of using his influence to take advantage of others and spreading the same greed he said he was against. Some users said Portnoy’s actions with GREED and GREED2 were just like the usual pump-and-dump scams in the meme coin world.
The post “Dave Portnoy Under Fire for GREED Token Sell-Off Amid Rug Pull Accusations” appeared first on BeInCrypto.
