Barstool Sports founder Dave Portnoy created waves in the cryptocurrency world after launching and quickly abandoning a controversial meme coin called $GREED, causing its value to plummet by over 90% in just one hour.
The media mogul issued the token on February 19, presenting it as a "social experiment" to expose what he called the extreme greed driving the meme coin ecosystem. According to blockchain analytics firm Lookonchain, Portnoy initially purchased 357.92 million tokens, representing 35.79% of the total supply.
The coin's market capitalization rapidly climbed to $30 million shortly after launch. However, despite earlier statements about holding his position, Portnoy sold his entire stake within an hour through a single transaction. The abrupt sale caused $GREED's value to crash by 99%, with its market cap plunging below $3 million. Reports indicate Portnoy netted approximately $258,000 from the venture.
In a surprising move, Portnoy immediately launched another token called GREED2, acquiring 268.25 million coins or 26.8% of the supply. He defended his actions on social media platform X, stating he had only promised not to sell one specific coin - the Solana-based token JAILSTOOL.
The incident occurs amid broader controversy in the meme coin space, particularly surrounding the LIBRA token promoted by Argentine President Javier Milei. LIBRA's market cap reached $4.4 billion before collapsing amid allegations of insider trading and market manipulation.
Critics have condemned Portnoy's actions, especially given his previous statements about not engaging in "rug pulls" - a crypto term for quickly abandoning a project after attracting investors. The episode highlights ongoing concerns about manipulation and speculation in the volatile meme coin market.