The well-known Barstool Sports founder and social media figure Dave Portnoy is in the news again, this time for creating a new cryptocurrency token, $Greed.
Following its recent launch, the $Greed token has performed something akin to a market crash, with some amateur traders reeling from the losses. Yet for some reasons, Portnoy’s latest scheme in the crypto space has become something of a cautionary tale, sending some investors into the fetal position and causing others to, well, grease up for more Portnoy antics.
$Greed Token Launch: A Quick Profit and an Instant Crash
Portnoy, recognized for his atypical and often disputable method of investing, formed the $Greed token and promptly bought a large fraction of its complete supply. Indeed, Portnoy picked up a jaw-dropping 357.92 million $Greed tokens, which made up 35.79% of the total supply. That stake gave him a lot of sway over how the token performed in the market. But, as is frequently the case in crypto, a we-can’t-believe-this subplot occurred when Portnoy decided to dump the whole caboodle all at once.
In one fell swoop, Portnoy unloaded all 357.92 million $Greed tokens, and the results were instantaneous and disastrous. The sale sent the price of $Greed into freefall, crashing by an unbelievable 99%, and leaving the token’s holders in quite a pickle. As the price plunged, Portnoy netted himself an impressive haul of around $258,000, and those who had invested in $Greed took on the appearance of folks made to look like they’ve been had.
The swift plunge in the worth of $Greed is an obvious sign of the wild swings that characterize the cryptocurrency market. Because it was already a shaky foundation, the market was profoundly disturbed when a single, large-scale sell-off was made. The market was also left trying to find a new footing. Portnoy, as previously mentioned, made a nice profit. In the wake of the event, though, other individuals left with many reeling from the event would not consider themselves to be Portnoy’s partner.
Enter $Greed2: Another Gamble or a Repeat of History?
Following the $Greed debacle, Portnoy did not retreat from the crypto world. He doubled down and entered the world of token creation by creating a new token: $Greed2. Like its predecessor, $Greed2 captured early attention from the market. Portnoy holds 268.25 million $Greed2 tokens, representing 26.8% of the total supply of the token.
Although Portnoy has earned enormous profits from his swift and decisive trading actions, many other traders have not been so lucky. Some traders have even lost their shirts while falling into the trap of trading not on the bases of fundamental analysis or risk management, but instead on those of Portnoy token hype and the semi-legal trading operations that Portnoy seems to engage in. One of those traders who is now down a lot of money apparently had a huge position in the original $Greed token.
This person had bought 911 SOL (approximately $153,000) to acquire $Greed tokens in the hope of realizing a lucrative investment. However, after Portnoy’s sale set off a market crash, the individual had to sell their tokens for a paltry 309 SOL (about $52,000). The loss taken here (602 SOL, roughly $101,000) is a direct consequence of Portnoy’s decision to sell his position.
The predicament brings to light the dangers that lie within the realm of cryptocurrency trading—where entities can make a price move that sends everything else tumbling— and also serves as a warning about the (not so surprising) unpredictability of crypto markets. For traders engaged in crypto hype, this story underscores how easily one can lose it all when a market suddenly swings against you.
The Growing Influence of Social Media Personalities in Crypto
Portnoy’s entry into the crypto market has raised a lot of talk about what financial influence social media personalities can exert these days. I mean, here we have this guy creating a token, buying a large swath of it, and then with a single sale crashing its price—what’s going on with that? It seems to suggest that high-profile personalities have some serious juice in the crypto market, and in Portnoy’s case, at least, it hasn’t been pretty. Indeed, there’s a broader story here about when and why cryptocurrencies get price bumps or drops, with, let’s face it, celebs and influencers being a big part of that narrative these days.
Portnoy’s moves can be seen as a warning for those who are into trading Bitcoin and Ethereum. While some of Portnoy’s trades have been profitable, they are not always taken in the most rational way. Worse, their socially influential nature makes them a form of “pump and dump” for the market, inflating its already excessive volatility. Portnoy’s actions certainly began inflating Bitcoin and Ethereum’s prices.
Conclusion: The Aftermath and Lessons Learned
Portnoy’s participation in the founding and marketing of the $Greed and $Greed2 tokens emphasizes the volatility and danger of the cryptocurrency world. Although he made a swift and sure profit on the sale of $Greed, the immediate post-sale scene was a bloodbath for many traders. What happened to the $Greed token after Portnoy’s departure shows how fast the crypto market can turn, and how one man can move a market by just being himself.
For investors, the key takeaway here is the risk that’s always going to be there for trading in volatile markets. When you think about it, most of what’s happening in crypto isn’t that different from the way a stock or bond market might behave. Portnoy and company might be bad for crypto as a whole, for all I know, but even if that’s the case, the message I’d want to take away from the $Greed saga is simply that massive volatility doesn’t just go hand in hand with the crypto space. Fortunes can be and are made or lost in an instant, and when a market’s this jumpy, it’s not at all clear why you’re making or losing those fortunes.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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