- Dave Portnoy has been accused of orchestrating over 15 pump-and-dump schemes
- He earned around $258,000 on the GREED meme coin before it crashed
- Portnoy received a $5 million refund from the $LIBRA team, a gesture not extended to others
Dave Portnoy, founder of Barstool Sports, is facing scrutiny for his involvement in multiple meme coin ventures, raising speculation about possible legal consequences as a result.
Polymarket, the decentralized information markets & predictions platform, has seen fluctuating odds on a potential Portnoy’ incarceration.
Earlier today, the probability stood at 18%, indicating significant market concern.
Subsequently, the odds came down 9%, suggesting a reduction in perceived risk.
Pump-and-Dump Allegations Mount Over $GREED and $GREED2 Coins
Portnoy has been accused of orchestrating over 15 pump-and-dump schemes, where he allegedly promoted meme coins to inflate their prices before selling off his holdings for profit.
The latest one is centered around the GREED meme coin.
He launched it on February 18, encouraging his followers to invest. Going against his initial assurances, Portnoy reportedly sold his entire stake, which was 35.79% of the total supply, causing the value to plummet (a 99% crash in the token’s value).
By doing so, he earned around $258,000.
In the wake of the $GREED collapse, Portnoy launched $GREED2, retaining 26.8% of its total supply.
Related: Solana Meme Coin Chaos: Scandals Spark Investor Risk Debate
$LIBRA Token Refund Controversy Raises Ethical Questions
On top of that, Portnoy was reportedly offered over 6 million $LIBRA tokens pre-launch for promotional purposes. However, once he learned he couldn’t disclose this compensation, he returned the tokens. Despite this, Portnoy invested his own funds into $LIBRA, which subsequently collapsed, too, leading to huge financial losses.
Adding to the complexity, Portnoy received a $5 million refund from the $LIBRA team after the crash, a gesture not extended to other investors. This preferential treatment has raised questions about his level of involvement and the ethics surrounding the refund.
Related: Argentina’s Crypto President in Trouble: Milei Charged Over LIBRA Token Fail
Mounting Calls for Legal Action – “Pump-and-Dump” Accusations Intensify
Portnoy’s rapid sell-offs and subsequent market crashes have led to allegations of orchestrating pump-and-dump schemes, where a token’s price is artificially inflated before insiders liquidate their holdings for profit.
The crypto community’s outcry has intensified, with discussions about potential legal actions against Portnoy for market manipulation and fraud.
Portnoy Defends Actions: “Just Exposing Meme Coin Greed”
Portnoy has defended his actions by asserting that he has been forthright about his intentions, emphasizing the speculative nature of meme coins and the inherent risks involved.
He has asserted that the pervasive greed within the meme coin ecosystem justifies his actions, suggesting they serve to expose the opportunistic behaviors rampant among traders and influencers.
While no formal charges have been filed, this is a developing story with public and market sentiment closely monitoring the developments.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
