How Barstool Sports’ Dave Portnoy Lost Over $600,000 to Bitcoin
Dave Portnoy, the founder of Barstool Sports, had an unfortunate incident with his $1 million Bitcoin investment after the 2022 FTX crash.
The media personality announced his foray into cryptocurrency in a video on X (formerly Twitter).
Dave Portnoy's Unsuccessful Bitcoin Journey
Dave Portnoy began his journey in 2017 with an educational meeting with the Winklevoss twins, during which they helped him set up an account on the crypto exchange Gemini. Although he made a significant purchase, he quickly sold his holdings due to the volatility of Bitcoin's price.
In the year In 2022, armed with a better understanding of the leading cryptocurrency, Portnoy invested more than $1 million when the price dropped to approximately $32,000. However, the failure of the FTX sequel and rumors that Gemini might follow suit led him to test the release feature on the platform. He considered himself a “hands on diamond” and thought to “take out a little money” and leave the rest there.
As BTC surged over $43,000 after the recent adoption of the Spot Bitcoin ETF (Exchange Traded Fund), Portnoy's attempt to reassess his portfolio revealed a critical error – he had unknowingly cashed it all in.
“What should I do now? Buy it for $44,000? I bought it for $32,000… I accidentally cashed out for $20,000, and I didn't even mean to cash out. I wasn't going to sit there and leave the money… I can't win with Bitcoin. I owe someone BTC,” he said.
Read More: 10 Cheapest Cryptocurrencies to Invest in January 2024
Portnoy's involvement with cryptocurrencies extends to a $40,000 investment in SafeMoon. This investment caused legal problems, and the investment value dropped to $2,300, all without a single withdrawal.
The crypto community responded to Portnoy
The cryptocurrency community reacted with mixed feelings. While some labeled Portnoy as having a weak hand in the market, others encouraged him to re-enter.
Michael Saylor, founder of MicroStrategy, advised Portnoy not to sell Bitcoin, emphasizing its long-term potential. Bloomberg EFF analyst James Seyfarth found the incident both sad and funny.
Jan3 CEO Samson Mow suggested Portnoy keep more bitcoins in hardware wallets for ten years.
“I teach you how to put it on a hardware bag. Then you sit your ass on that bag for 10 years. That's how your face stops getting congested. You're going to tell your grandkids that Samson saved you from having your face hurt,” Mow said.
Conversely, crypto analyst Dave The Wave has maintained Portnoy's selloff, expressing doubt that he will hold on to Bitcoin at $15,000 after buying it at $11,000 and seeing it rise to $60,000. The analyst speculates on a strategy that involves selling the unit near the top while keeping the rest, guided by the LGC model.
“The LGC model is covered on the chart [since 2018] It might have helped, he might have decided to hold the rest and sell it to the top… and not panic at the bottom,” he added.
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