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Dave Portnoy, founder of Barstool Sports, netted approximately $258,000 after launching and quickly selling his stake in a Solana-based meme coin named GREED, which subsequently crashed 99% in value.
The February 19-20 incident has triggered allegations of market manipulation and calls for a regulatory investigation.
Blockchain analytics firm Lookonchain revealed Portnoy acquired 357.92 million GREED tokens—representing 35.79% of the total supply—before dumping his entire position in a single transaction. The price plummeted from $0.03 to $0.003 within seconds of his sale.
One trader reportedly lost $101,000 within three hours after purchasing GREED with 911 SOL ($153,000) and selling for just 309 SOL ($52,000).
Portnoy defended his actions on social media platform X. “I warned people I could sell. I could have cashed out +1 million. I let it drop 75% before cashing out,” he wrote. He claimed to have reinvested profits into another token called JAILSTOOL.
“I didn’t make a dime on it. Some people won. Some lost. Only the losers keep bitching,” Portnoy added.
The controversy intensified when Portnoy launched GREED2 shortly after the original token’s collapse. This second token initially reached a $28 million market capitalization before falling below $750,000, according to pump.fun data.
Crypto analyst ZachXBT condemned Portnoy’s behavior. “To launch multiple memecoins, saying you are not going to sell, and then selling right after is worse than what CT native influencers ever did,” he stated.
The incident follows Portnoy’s involvement with several other controversial tokens. Earlier in February, he reportedly profited $118,000 from selling JAILSTOOL tokens after promising holders he would maintain his position.
He was also linked to the LIBRA token, which crashed after being promoted by Argentine President Javier Milei. Hayden Davis, CEO of Kelsier Ventures, reportedly refunded Portnoy’s losses while other investors received nothing.
Crypto exchange Kraken faces mounting criticism for its sponsorship of Portnoy. Users on X have questioned how long the company will “continue sponsoring Dave Portnoy and his daily pump and dumps.”
Market observers suggest these incidents may trigger regulatory scrutiny. As one X user noted, “Pump and dump schemes and fraud aren’t legal just because Donald Trump launched a coin.”
These controversies emerge amid what crypto traders describe as “crime season”—a period of increased questionable activity following Donald Trump’s launch of a Solana-based meme coin days before his inauguration.
