Dave Portnoy, who invested more than $1m in Bitcoin, exits crypto after market pullback

Barstool Sports founder Dave Portnoy sold all the bitcoins he had previously bought. The entrepreneur told his followers on Twitter that he was disappointed by the price drop, having lost $25,000 on the market pullback.

In addition to Bitcoin, Portnoy also bought Chainlink and Orchid tokens and had been actively promoting them in recent days.

On Monday, when the price of Bitcoin rose to $12,400, Portnoy was extremely bullish. He said he earned more than $100,000 on Bitcoin and held at least $300,000 in LINK. He expected that if the same momentum continued for a month he would increase his exposure by $1 million. However, LINK has since fallen 30%, OXT by 28%. Bitcoin is presumably at his entry point.

I currently own zero bitcoins. I will wait and watch. I lost 25k. Just like with the stock market it took my brain time to figure it out. I know this. The Link Marines are weak and the orchid flowers do die in the crypto world. I may or may not be done. #bitcoin

— Dave Portnoy (@stoolpresidente) August 21, 2020

“I currently own zero bitcoins. I will wait and observe. I lost $25k…”, he wrote on Friday evening.

Portnoy described LINK holders (Link Marines) as “weak”, and the Orchid flowers, he says, “are dying in the crypto world.”

In comments on his post, users tried to point out to Portnoy that he bought Chainlink at the peak and that after the correction its price, they expect, would rise again.

After a while the entrepreneur posted a second tweet, saying that he had exited crypto because “coins don’t always go up.” By contrast, stocks, he argues, continue to rise.

DDTG ALERT: I’m out on crypto because coins don’t always go up. Stocks on the other hand continue to always go up. pic.twitter.com/8zfOvNqEVX

— Dave Portnoy (@stoolpresidente) August 21, 2020

Adam Back, CEO of Blockstream, commented on the post. He said Portnoy should not have bought “shitcoins” that are meant only to deprive users of their Bitcoin. The better strategy, Back said, would be to hold Bitcoin in the portfolio for the long run, especially given the risks of daily trading.

Also day trading Bitcoin is risky, it’s better to hold for a few years at least, but if you want BTC day trading, leveraged BTC perpetual futures on one of the platforms supporting them are a way to really amp risk/reward towards casino, without getting into rigged alt territory.

— Adam Back (@adam3us) August 21, 2020

In light of the downturn in the sports industry caused by COVID-19 restrictions, Portnoy turned to day trading. In early August he took an interest in Bitcoin, but the mechanics of cryptocurrencies seemed too complex to him.

Last week, Dave Portnoy announced that he invested a “seven-figure” sum in Bitcoin after meeting with the Gemini Exchange founders, the Winklevoss twins, whom he sought for help.

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