Dave Portnoy is a smart man. He’s a successful businessman, an avid sports bettor, and an innovator. Once, he even won $15,000 on DraftKings Casino playing online blackjack while waiting for his pizza to cool.
But he doesn’t always get it right, and he's not afraid to admit it.
The Barstool Sports founder recently made headlines for his unexpected move into the cryptocurrency world. Portnoy accidentally invested nearly $170,000 worth of Solana in a random LIBRA token, not the version associated with the controversial meme-coin linked to Argentinian President Javier Milei.
This is just one of the multiple posts he added on his X account about the inadvertent purchase.
He alerted everyone that he performed what is called a "rug pull" on himself.
What Is a Rug Pull?
A "rug pull" happens when a developer or creator promotes a project, such as a new coin or NFT, and then vanishes with the investors' money. It's hard to track down the people behind rug pulls because blockchain technology is decentralized and allows them to hide their identities.
One of the most recent, notable, alleged rug pulls happened last fall.
Sports betting influencer Taylor Mathis was accused of increasing the value of her own token before its value suddenly dropped. Mathis reportedly encouraged her followers to invest in the token, boosting its price. She later sold her tokens right before the value fell, leading to a 96% decline.
What Crypto Did Dave Portnoy Buy?
According to a report by The Block, Solana (SOL) transaction data shows that Portnoy's purchase of the illiquid LIBRA token caused its price to skyrocket by more than 3,000%. Unfortunately for him, it wasn't the same LIBRA token that has been attracting media attention due to its connection with Milei. This mishap stems from the different contract address of the token Portnoy bought.
Shortly after realizing his mistake, Portnoy took to X to express his thoughts. He jokingly asked if anyone wanted to buy "some fake Libra" and warned others about the meme coin's volatile nature.
Portnoy described it as a potential collector's item but cautioned buyers not to invest more than they can afford to lose.
Who Is Dave Portnoy?
Dave Portnoy is a prominent American entrepreneur and internet personality, best known as the founder of Barstool Sports. Barstool Sports is a well-known sports and pop culture blog that has grown into a significant media company over the years, producing content across various platforms, including podcasts, social media, and video.
Portnoy launched Barstool Sports in 2003 as a print publication before transitioning it online.
He is known for his energetic and outspoken personality, which has helped him cultivate a large following. In addition to his work with Barstool, Portnoy has ventured into other areas such as finance, particularly through his involvement and commentary in the stock market, which he often shares with his audience on social media.
He has also gained attention for his "One Bite" pizza reviews on YouTube and social media, where he tastes and rates pizza from different establishments nationwide. His bold opinions and charismatic style have made him a recognizable figure in internet culture.
The Financial Impact of Portnoy’s Mistake
According to The Block, if Portnoy decides to sell, he stands to lose most of his original investment. At last check, the token's price was heading south of $178 from a previous high of over $289.
On a related note, Portnoy revealed additional information about his involvement with the more newsworthy LIBRA token — the one linked to Milei. He initially planned to join the project as an advisor and purchased tokens at launch. However, Portnoy returned about 6 million tokens after being advised by the project's advisor, Hayden Davis, to keep certain details under wraps.
Safe To Say: Lessons Learned
This incident serves as a stark reminder of the volatility and unpredictability inherent in meme coins and cryptocurrency investments. Even for seasoned investors like Dave Portnoy, errors can lead to significant financial losses. Due diligence and cautious investing remain crucial in navigating the ever-changing world of digital currencies.
It appears that Portnoy has better luck at the blackjack table. If you'd like to learn more about online blackjack, there are plenty of sites where you can legally play.
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