Dave Portnoy, the founder of Barstool Sports, has forcefully pushed back against accusations that his recent meme coin trading constitutes a pump-and-dump scheme, insisting it's a transparent, high-risk game where everyone understands the stakes. In a series of posts and videos on X (formerly Twitter), Portnoy dismissed critics as sore losers who simply missed the opportunity to dump their bags on him.
On Feb. 7, Portnoy posted: “We all know the rules. We’re all trying to make a buck. Nobody is misleading anybody. If you are buying and selling shitcoins, you should be prepared to lose your investment. It’s a risk.” He followed up with several videos detailing his recent entry into the altcoin market. Portnoy admitted he was initially unfamiliar with trading such assets until someone taught him the mechanics, prompting his first foray into meme coins.
From $10K to $75K in Hours
Recounting his first successful meme coin trade, Portnoy said: “A guy taught me how to get in … I bought [a coin], tweeted that I bought it, the thing went up, then I sold it.” He repeated the process with another coin: “Same thing, tweeted: ‘Hey, I’m buying this. I’m gonna sell it.’ I turned like 10 grand total into like 75 grand. I don’t even know how. It happened so fast.” Acknowledging the rapid gains, he added: “I feel as though I could sit here and make millions trading shitcoins. Do you go to jail for this? Can I not do this? I think it’s legal … This is just being a trader.”
Regulatory Shifts: Meme Coins as Collectibles
Portnoy’s defense comes amid a shifting regulatory landscape for cryptocurrencies in the U.S. A recent shakeup at the Securities and Exchange Commission (SEC) may signal a more lenient stance on speculative trading. Crypto Czar David Sacks has argued that meme coins should be classified as collectibles rather than financial instruments or securities, framing them as outside traditional securities laws. Meanwhile, high-profile figures such as Donald Trump (with his TRUMP token) and Melania Trump (with her own cryptocurrency) have further normalized the meme coin space.
Portnoy stressed that his trades involve existing meme coins, not his own token. “This isn’t my own coin. If I launch my own coin, put my name on it, trust me, I’m going to make sure I don’t get fu*king scammed, I’m not gonna rug pull, I’m not gonna dump, I’m not going to do any of that shit. These are other coins that are already out there that I’m telling you I bought. You know what I’m doing. I’m trying to make money. It pops, I sell it when I feel like it.”
‘Stop Crying, Everyone Knows the Rules’
Addressing those upset by his trades, Portnoy said: “You’re just mad you didn’t dump them on fu*king me … So stop crying. Everyone knows the rules. This isn’t like Joe Six-Pack or your grandmother who’s losing their life savings. This is everybody playing the same game which is legal now. They’re collectibles … They’re going up and down. Sacks said it. You all know the score … I’ve lost tons of money on shitcoins. Don’t cry because you’re too late.”
Portnoy’s combative stance highlights the ongoing debate over meme coin regulation, market manipulation, and personal accountability in crypto. As the industry awaits clearer regulatory guidelines, his case serves as a flashpoint for whether such transparent coin promotion crosses legal boundaries.