Dave Portnoy, founder of Barstool Sports, is facing backlash after launching and abruptly dumping a Solana-based meme coin, GREED, before introducing a sequel token, GREED2. The move has sparked accusations of a “rug pull,” despite Portnoy’s previous claims that he would never deceive investors, Decrypt reported.
Less than two weeks ago, Portnoy assured investors of his transparency, publicly sharing his wallet and promising not to engage in fraudulent trading practices. However, on February 18, 2025, he launched GREED, branding it with an image of Gordon Gekko from Wall Street and referencing the character’s infamous “greed is good” mantra. The token surged in value, reaching a $41.5 million market cap. Portnoy initially invested $4,200 and later added another $1,670 after a price dip.
Speaking on X Spaces, Portnoy denied any intention of dumping GREED, even claiming he had attempted to burn its supply. Yet, just 30 minutes later, he sold off his entire holdings in one transaction. According to SolScan data, the estimated value of his tokens at the time was $270,000. The sale triggered an immediate 99% drop in GREED’s market cap, plummeting it from $12.88 million to just $123,950 in seconds.
In response to criticism, Portnoy defended his actions, stating that he had warned investors he might sell and had allowed the price to drop 75% before cashing out. He then funneled the profits into another meme coin, JAILSTOOL, which he claimed he could not sell. Minutes later, he launched GREED2, which briefly reached a $7 million market cap before crashing 90% over the next five hours.
This controversy unfolds as crypto traders warn of “crime season,” with meme coin launches linked to figures like Donald Trump and Argentina’s President Javier Milei drawing scrutiny.
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