Crypto Exchange Kraken Faces Criticism Over Dave Portnoy’s Memecoin Activity

Crypto exchange Kraken is under fire for allowing controversial Barstool Sports founder Dave Portnoy to damage its reputation after he launched several memecoins that all crashed over 99%.

Throughout February, Portnoy promoted multiple coins that surged and plummeted, earning him thousands. Notably, the token JAILSTOOL was mentioned, with Portnoy declaring he would hold it after claiming he accidentally sold it while using the toilet.

He has faced backlash for the launch of tokens GREED and GREED 2. According to Lookonchain, he held 35.79% of the GREED supply, selling it in one transaction, which led to a 99% crash. His reported profit exceeded $250,000.

Users on X expressed concern, stating Portnoy is “taking a giant shit on Kraken’s reputation” while Kraken remains silent. NFT trader @Tyler_Did_It questioned how long Kraken would sponsor Portnoy despite his mockery of the space.

Crypto analyst ZachXBT remarked that Portnoy’s actions reflect poorly on Kraken, claiming launching multiple memecoins and selling post-promotion is worse than some notorious crypto influencers.

Portnoy Responds to Criticism

During a Kraken-sponsored livestream, Portnoy defended himself, stating people are “cashing out left and right,” but claimed he isn’t among them. He emphasized, “All you internet sleuths get on my wallets, it’s all connected to Kraken.”

He also mentioned that he could have made another $200,000 on GREED 2, expressing his frustrations about the complaints in the crypto space.

In response to Lookonchain’s analysis, he claimed, “I let it drop 75% before cashing out. Lots of people made money. I took the profits and poured it into #jailstool which I can’t touch.”

He concluded with, “I didn’t make a dime on it. Some people won, some lost. Only the losers keep bitching.”

Protos has reached out to Kraken for comment regarding Portnoy’s memecoin launches.