TL;DR
Dave Portnoy launched and dumped the GREED crypto coin in an hour, profiting while many lost their investments. This pump-and-dump scheme highlights the dangers of hype and lack of regulation in the crypto market.
Story
John thought he’d found a shortcut to riches. Dave Portnoy, the loud guy from Barstool Sports, launched a new cryptocurrency called GREED. John jumped in, hoping to ride the hype. One hour later, the coin crashed 99%. John’s investment? Gone. Poof.
This wasn’t an accident. It was a classic “pump and dump."‣ Pump and dump: An influencer hypes up an asset (pumps), driving up the price. Then they sell (dump), crashing the price and leaving others holding worthless bags. Portnoy made a killing; John lost his shirt.
Remember the 2008 housing bubble?‣ 2008 housing bubble: Loans were given to people who couldn’t afford them, inflating housing prices. The market crashed when these loans defaulted. Or Enron?‣ Enron: An energy company that hid its debt through complex accounting, leading to its collapse and investor losses. Greed, fueled by hype, has caused crashes time and again. Crypto, with its lack of regulation, is a new playground for these old tricks.
Portnoy faced backlash but quickly launched GREED2. Some call it a “social experiment.” Others call it a blatant disregard for his followers. Whatever it is, it’s a reminder: in the crypto casino, the house always wins.
The human impact? Devastating. Retirement savings wiped out. Dreams turned to dust. This isn’t just about numbers on a screen—it’s about real people losing real money.
Think of it like a game of musical chairs. When the music stops (the hype dies), someone’s left standing. And in crypto, it’s usually not the average Joe.
Advice
If a celebrity is pushing a new crypto, run the other way. It’s probably a trap.