How Barstool Sport’s Dave Portnoy Misplaced Over $600,000 to Bitcoin

Barstool Sports activities founder Dave Portnoy encountered an unlucky incident along with his substantial $1 million Bitcoin funding after FTX collapsed in 2022.

The media character chronicled the occasions surrounding his foray into cryptocurrency through a video on X (previously Twitter)

Dave Portnoy’s Failed Bitcoin Journey

Dave Portnoy started his journey in 2017 through an academic assembly with the Winklevoss twins, throughout which they assisted him in establishing an account on the crypto trade Gemini. Regardless of making a big buy, he swiftly offered off his holdings attributable to Bitcoin worth volatility.

In 2022, armed with a greater understanding of the main cryptocurrency, Portnoy invested over $1 million when its worth dipped to roughly $32,000. Nonetheless, FTX’s subsequent collapse and rumors suggesting Gemini would possibly observe led him to check the withdrawal characteristic on the platform. He meant to “money out a little bit” and depart the remainder in there as a result of he thought-about himself “diamond fingers.”

As BTC surged previous $43,000 after the current approval of a spot Bitcoin ETF (exchange-traded fund), Portnoy’s try and assessment his portfolio revealed a essential error — he had inadvertently transformed all of it to money.

“What am I speculated to do now? Purchase it at $44,000? I purchased at $32,000… I by accident cashed out at $20,000, and I didn’t imply to money out. I wouldn’t have left the cash simply sitting there… I can’t win with Bitcoin; any person owes me BTC,” he mentioned.

Learn extra: Prime 10 Most cost-effective Cryptocurrencies to Spend money on January 2024

Portnoy’s involvement with cryptocurrencies extends to a $40,000 funding in SafeMoon. This funding resulted in authorized issues, and the worth of his funding plummeted to round $2,300, all and not using a single token withdrawal.

Crypto Group Reacts to Portnoy

The cryptocurrency group responded with combined sentiments. Whereas some labeled Portnoy as having a weak hand available in the market, others inspired him to re-enter.

MicroStrategy founder Michael Saylor advised Portnoy towards promoting Bitcoin, emphasizing its long-term potential. Bloomberg ETF analyst James Seyyfart discovered the incident each distressing and humorous.

Samson Mow, the CEO of Jan3, instructed Portnoy safe further Bitcoin in a {hardware} pockets for a decade.

“’ll educate you learn how to put it on a {hardware} pockets. You then sit your ass on that pockets for 10 years. That’s the way you cease getting face f#cked. You’ll inform your grandkids that Samson saved you from getting face f#cked,” Mow mentioned.

Conversely, crypto analyst Dave the Wave anticipated Portnoy’s sale, expressing doubt that he would have held onto Bitcoin at $15,000 after shopping for at $11,000 and witnessing its development to $60,000. The analyst speculated on a possible technique involving promoting a portion close to the height whereas retaining the remainder, guided by the LGC mannequin.

“The LGC mannequin overlaid on the chart [since 2018] might need helped, the place he could have determined to promote a portion close to the highest whereas persevering with to carry the remainder… and never panic on the backside,” he added.