In the bustling halls of Consensus 2025, Dave Portnoy, the unapologetic founder of Barstool Sports, delivered a frank assessment of meme coins, labeling them as a form of gambling that’s unlikely to endure. Engaging in a candid dialogue with Bullish CEO Tom Farley, Portnoy shared his tumultuous adventures in the meme coin arena, a world teeming with swift gains and equally rapid downfalls.
A Rollercoaster Ride with Meme Coins
Portnoy’s foray into the meme coin landscape paints a vivid picture of the frenzy that surrounds this niche. It all kicked off with SafeMoon, an emblem of the COVID-era crypto surge. Attracted by tales of astronomical gains shared on social media, Portnoy jumped in, only to find himself embroiled in legal skirmishes. “They basically said SafeMoon paid me to promote them,” he recounted, dismissing it as a complete fabrication that cost him $20,000 to resolve.
Not one to shy away from risk, Portnoy pursued further ventures, including an audacious $4.5 million plunge into a token pitched as Libra, supposedly backed by Argentina’s president. The reality was far from the promise. Instead of a Musk-fueled endorsement, the venture culminated in disavowal and financial loss—though he was fortuitously reimbursed by the developer.
The Culture of Speculation
Meme coins, often birthed as jokes rather than practical assets, have captivated a demographic of eager, risk-embracing traders. Portnoy, known for his audacious online persona and knack for viral content, found himself swept up in this speculative whirlwind. Despite the occasional windfall, he openly acknowledges the pitfalls. “It’s the same group of winners and it’s the same group of losers,” he remarked, highlighting the skewed dynamics of these markets. This mirrors the broader trend of crypto token failures, as highlighted in CoinGecko’s report on the soaring failure rate of tokens.
The saga of his own creations, Greed and Greed2, underscores the satirical edge he brought to his meme coin investments. Yet, the backlash from these ventures was palpable. A chance encounter in Las Vegas with a disgruntled investor brought home the real-world consequences of the digital playground’s risks. “It’s all fun and games behind the computer,” Portnoy noted, “but that reinforces people are losing and making real money, and they’re not always taking responsibility for the risk.”
Is the Meme Coin Trend Sustainable?
Reflecting on his experiences, Portnoy’s views offer a sobering perspective on the sustainability of meme coins. While the thrill of the gamble is undeniable, he asserts that the structure resembles a Ponzi scheme, though not necessarily with malicious intent. “I get why people like it,” he admitted. “It’s a form of gambling.”
The larger question hangs in the air: how long can this phenomenon persist? Portnoy’s forecast is cautious. He suggests that while meme coins may linger for another four years, their long-term viability remains doubtful. “I can’t imagine it’s here to stay,” he mused, leaving open the question of what the future holds beyond this speculative chapter. This sentiment echoes the resilience seen in the meme coin market, much like Dogecoin’s stability despite recent controversies.
In a market notorious for its volatility, Portnoy’s insights serve as both a cautionary tale and a reflection on the cultural zeitgeist that meme coins have become. As traders continue to navigate this tumultuous terrain, the conversation around risk and responsibility is more relevant than ever. The allure of quick riches will undoubtedly continue to beckon, but the lessons from Portnoy’s rollercoaster ride might just temper the rush for those willing to listen.
Source
This article is based on: Dave Portnoy Says Meme Coins Are ‘Gambling’ and Not Built to Last
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
