Opinion: Memecoins Are Legalized Ponzi Schemes

Barstool Sports founder Dave Portnoy stated that he has not launched a Barstool-branded memecoin because he is concerned about fans losing everything. He called memecoins legalized Ponzi schemes, with no inherent value, requiring entry and exit before a crash.

Although he declined to launch a Barstool memecoin, he did issue GREED this February, which at one point had a market capitalization of $41.5 million. Data from Lookonchain shows that Portnoy purchased 358 million GREED tokens, accounting for 35.79% of the total supply, and later sold all in a single transaction leading to a price crash, with a profit of approximately $258,000. He responded on X stating he had warned of a possible sale. (CoinDesk)