Dave Portnoy Says Meme Coins Are 'Gambling' and Not Built to Last
Dave Portnoy Says Meme Coins Are 'Gambling' and Not Built to Last
The Barstool founder opened up about the risks and rush of meme coins at a fireside chat with Bullish CEO Tom Farley.
Dave Portnoy has voiced his opinion on meme coins, labeling them as a form of gambling rather than a lasting investment. Speaking at a discussion with Bullish CEO Tom Farley, the Barstool founder shared his fascination with the excitement and risks associated with meme coins.
Acknowledging his penchant for thrill as a gambler, Portnoy expressed doubts about the enduring value of meme coins amidst the backlash they attract. He delved into his experiences dabbling in these tokens, recounting incidents involving SafeMoon and other ventures that ended in losses or legal disputes.
Despite encountering setbacks, such as being sued for promoting SafeMoon and losing substantial amounts on other meme coins like Libra, Portnoy continued his experimentation in this volatile market. He created satirical coins like Greed and Greed 2, while also embracing tokens like JailStool that emerged from public criticism of his crypto escapades.
Portnoy admitted to experiencing massive gains followed by significant losses in a short period, highlighting the unpredictable nature of meme coins. Reflecting on accusations of being involved in "rug pulls" where early investors profit at others' expense, he painted a picture of an unfair playing field dominated by insiders and trading algorithms.
Despite entertaining the idea of launching Greed 3, Portnoy seemed wary of the negative repercussions and real-world consequences stemming from meme coin activities. He pointed out how individuals have faced financial losses due to their involvement in these speculative assets without fully understanding or acknowledging the risks involved.
Portnoy concluded that while there is an allure to meme coins akin to gambling or even a Ponzi scheme, he remains skeptical about their sustainability in the long term. Expressing uncertainty about their future beyond the next few years, he hinted at a potential downturn for this trend-driven sector.
“I was at SNL with Lady Gaga. I was just typing. I'm like, what the hell is going on here?” he said. The developer had told him Elon Musk would tweet about it. Instead, the president disavowed any involvement. “I lost all my money.”
Portnoy says he got lucky — the developer later reimbursed him in full, though he isn’t sure why. “I'm one of the lucky ones, but you know, I'm not going to not take that money back.”
Despite the losses, Portnoy kept dabbling. He launched coins called Greed and Greed 2, leaning into the satire. Another coin, JailStool, emerged from public outrage at his meme coin experiments. Someone else created the token, but Portnoy embraced the name and posted about it. At one point, he claims, a $1,000 investment ballooned to $7 million — within an hour.
“It took me 13 years to make that kind of money at Barstool,” he said.
But what goes up almost always crashes back down. Portnoy says he’s lost track of how many times he’s been accused of “rug pulls,” a term for when insiders dump a coin and leave latecomers with worthless tokens.
He described meme coins as a rigged game, dominated by a core group of early buyers with trading bots and algorithms who know when to exit. “It's the same group of winners and it's the same group of losers.”
That realization seems to have changed his appetite. While he teased the possible launch of Greed 3, he admitted the backlash is harder to stomach in real life. One man confronted him in a Las Vegas casino, claiming he lost $200,000. “It’s all fun and games behind the computer but that reinforces people are losing and making real money, and they're not always taking responsibility for the risk, even though I think they should.”
Despite the money and the memes, he says the meme coin scene is ultimately unsustainable.
“I get why people like it,” he said. “It’s a form of gambling, it’s a Ponzi scheme, I don’t mean that in a negative way.”
Portnoy doesn’t claim to have the answers. But if he’s a weathervane for where meme coin mania might be heading, the forecast looks grim. “I can't imagine it's here to stay. I think it's here to stay for the next four years. What happens after that? I don't know.”
