From beincrypto by Lockridge Okoth

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 started with Portnoy’s launch of GREED, a meme coin he promoted as a collectible token. According to on-chain analyst Lookonchain, Portnoy purchased 357.92 million GREED tokens, representing 35.79% of the total supply.

Then, in one swift move, he sold his entire holding, causing the price of GREED to plummet by 99%. Despite the market crash, Portnoy walked away with a profit of approximately $258,000.

While Portnoy cashed out, others were less fortunate. One investor lost $101,000 in three hours, purchasing GREED with 911 SOL (worth $153,000) before selling for 309 SOL ($52,000) amid the price collapse.

“Dave Portnoy’s sell-off caused this guy to lose $101K on Greed in 3 hours! This guy spent 911 SOL ($153K) to buy Greed, and sold it for 309 SOL ($52K), losing 602 SOL ($101K),” Lookonchain reported.

The rapid devaluation raised questions about market manipulation and the ethics of holding a significant portion of the token’s supply.

Meanwhile, this is not Portnoy’s first brush with crypto drama. Just days before launching GREED, he was embroiled in the LIBRA meme coin scandal. Reportedly, Portnoy was offered over 6 million LIBRA tokens pre-launch but returned them upon learning he could not disclose his involvement.

“Dave Portnoy revealed he was offered over 6 million LIBRA tokens pre-launch However, he sent them back after being told he could not disclose receiving them. There are likely dozens of influencers who accepted tokens without disclosure. He is the only one who came forward,” BlockNews revealed on X.

He remains one of the few influencers to admit being approached with undisclosed tokens, sparking speculation about other influencers who may have secretly taken the deal.

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 began promoting another token, JAILSTOOL, listed on the Kraken exchange. He said all his GREED profits were reinvested into JAILSTOOL, which he never vowed to sell.

However, users quickly called him out, noting inconsistencies in his narrative. One pointed out that while Portnoy deployed GREED, he had no direct involvement with JAILSTOOL, leading to more skepticism about his intentions and transparency.

“…greed was actually deployed by you. Jailstool was not, and you also said you weren’t going to sell greed, lol,” crypto and NFT enthusiast moonpie666 remarked.

In response to the mounting criticism, Portnoy took to X to defend his actions and shed light on the darker side of the meme coin market.

“There are lots of people in the meme coin world who try to act like they are the moral authority when all they want to do is dump on you and make easy money. The entire ecosystem is Greed and nothing else. Go dump on each other peasants but don’t complain to me if you lose money,” he expressed.

His blunt comments did little to quell the backlash, with critics accusing him of exploiting his influence and perpetuating the GREED he claimed to criticize. Some users argued that Portnoy’s ventures in GREED and GREED2 were no different from other pump-and-dump schemes prevalent in the meme coin space.