Barstool Sports founder and internet personality Dave Portnoy has found himself at the center of yet another crypto firestorm—this time involving 6 million LIBRA tokens and a murky deal that he says lacked transparency.
Portnoy claims he was offered the tokens in exchange for promoting LIBRA, a cryptocurrency tied to Argentine President Javier Milei’s administration. However, when he was allegedly told he couldn’t disclose the nature of the deal, he refused to play along—sending the tokens right back to the project's founder, Hayden Davis.
“I can’t accept coins if you don’t let me say you gave me coins and that I’m part of the project,” Portnoy said. “So, I literally sent the coins back.”
Despite this, Portnoy still invested in LIBRA with his own money—only to watch its value plummet by more than 95%, erasing an estimated $107 million in liquidity.
A Crypto Disaster: LIBRA’s Meteoric Rise and Brutal Fall
LIBRA was marketed as a game-changer for Argentina’s struggling economy, promising to help small businesses and drive innovation. The hype skyrocketed after President Milei seemingly endorsed the token in a now-deleted social media post.
But the excitement didn’t last. Shortly after its launch, LIBRA crashed spectacularly, leading to accusations of a rug pull—a term used when crypto developers abandon a project after artificially inflating its value.
While some investors cried foul, Portnoy insists Davis didn’t intentionally scam anyone. Instead, he believes the political connection to Milei may have played a role in the project’s downfall.
Political Firestorm: Calls for Milei’s Impeachment
The LIBRA disaster has sent shockwaves through Argentina’s political scene. Critics argue that Milei’s association with the failed token has tainted his credibility, with some opposition leaders even pushing for his impeachment.
Milei, for his part, has tried to backtrack, claiming he had no prior knowledge of the project before promoting it. But for many, the damage is already done.
Meanwhile, investors who poured their money into LIBRA have been left holding the bag, with little recourse as the token’s value continues to hover near worthless levels.
The Bigger Picture: Crypto Endorsements Under Fire
Portnoy’s decision to return the tokens rather than engage in a shady promotional deal sheds light on the darker side of celebrity crypto endorsements.
In an industry already rife with scams and misleading promotions, transparency is everything. Portnoy’s stance sends a clear message:
If you can’t be upfront about a deal, don’t take it.
As more influencers, politicians, and celebrities dip their toes into the crypto world, the LIBRA fiasco serves as a massive wake-up call. Without proper disclosure and regulation, these endorsements can lead to devastating losses for everyday investors.
With crypto’s future hanging in the balance, one thing is clear: The need for transparency has never been greater.
