Barstool Sports founder Dave Portnoy has unintentionally invested nearly $170,000 in a lesser-known LIBRA token, leading to significant price fluctuations.
Barstool Sports founder Dave Portnoy has unintentionally invested nearly $170,000 in a lesser-known LIBRA token, leading to significant price fluctuations.
This token, distinct from the one associated with Argentinian President Javier Milei, surged over 3,000% following Portnoy's purchase, according to transaction data from Solscan.
Portnoy's acquisition of the illiquid LIBRA token has raised questions, as the investment is now valued at just over $62,000 after a dramatic price drop. The token's value fell from a peak of approximately $289 to below $178, leading to potential losses exceeding half of Portnoy's original investment if he chooses to liquidate his position.
Shortly after the purchase, Portnoy took to X, warning potential buyers about the risks of the token. He labeled it a "meme coin" and cautioned against investing more than one could afford to lose. “It will be volatile. It will eventually go to zero,” he stated.
The controversy surrounding the LIBRA token is further complicated by Milei's involvement. The president had promoted a different LIBRA token, reportedly as a means to support small businesses in Argentina, propelling it to a peak market cap of $4.5 billion.
However, this token has since plummeted, losing 95% of its value after Milei retracted his endorsement and related wallets withdrew $107 million.
Additionally, Milei faces legal scrutiny, with reports of fraud charges and calls for impeachment stemming from the circumstances surrounding the token's promotion.
Portnoy, who initially intended to act as an advisor for the token linked to Milei, has expressed frustration over the situation, particularly regarding the non-disclosure of gifts related to the project.
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