Dave Portnoy Warns Against Memecoins, Calls Them ‘Legalized Ponzi Schemes’
Dave Portnoy, known as "El Presidente," has refrained from launching a Barstool memecoin due to concerns about potential losses for his followers. He described memecoins as having no intrinsic value and characterized them as “legalized Ponzi schemes.”
Key points:
- Portnoy launched a memecoin called GREED in February, achieving a market cap of $41.5 million.
- He acquired 35.79% of the total supply, later selling all in one transaction, which led to a price crash and netted him approximately $258,000.
- Portnoy stated he could have made over $1 million from GREED but opted to sell after it dropped 75%.
- His investment journey began during the COVID-19 pandemic, initially with stocks and later expanding to cryptocurrencies like bitcoin and XRP.
- Despite his involvement, he admits a lack of understanding regarding blockchain technology and its integration into his business model.
- Barstool previously accepted bitcoin donations, raising $50 million, of which only $30,000 came from bitcoin.
- Portnoy plans to share more insights about his crypto experiences at Consensus 2025 in Toronto on May 15.