Safemoon up After Barstool Sports' Dave Portnoy Buys It: 'I Like the Word Moon'

Dave Portnoy, founder of pop culture blog Barstool Sports, said he has bought $40,000 worth of SafeMoon after deciding to invest in a "s***coin".

Portnoy announced the move in a tongue-in-cheek and extensively green-screened video that he posted to Twitter, seen below.

My shitcoin announcement. Invest at your own risk. I have no idea how this works

— Dave Portnoy (@stoolpresidente) May 17, 2021

The entrepreneur said he made the investment because he wanted to diversify his portfolio away from Bitcoin. He said Elon Musk had been "pulling levers" and causing the price of Dogecoin and Bitcoin to change.

He said he had decided to invest in one of what he called "the new breed of s*** coins," and selected a number of potential tokens that fell under this definition. Among them were SafeMoon, Shiba Inu, LiteCoin, and DogeCoin.

Portnoy said in the video: "Who's it gonna be? The answer is SafeMoon.

"Why? I don't know f***ing why, it could be a ponzi scheme. I like the word 'moon,' because that's where I want to go."

In a later tweet Portnoy claimed the token had increased in price by 25 percent since he invested, though it has since decreased.

SafeMoon is currently valued at $0.0000081, up around 4.5 percent over the past 24 hours at the time of writing.

Dogecoin is currently priced at $0.49, down 2 percent over the past 24 hours, while Bitcoin is worth $44,900, down less than 1 percent.

SafeMoon has proved popular since its launch earlier this year, and is currently placed second on CoinMarketCap's list of "most viewed cryptocurrencies" behind Shiba Inu and ahead of Bitcoin.

It works by issuing a fee on transactions, and a fraction of this is redistributed to all existing SafeMoon investors—a system that Portnoy said he liked.

Portnoy's announcement gained support from SafeMoon enthusiasts but also attracted critics.

Cryptocurrency and finance personality WSBChairman told Portnoy on Twitter: "You are one of the biggest financial influencers in the world. People can lose their homes or lives from the s*** you're promoting." Portnoy called WSBChairman "the biggest baby on the planet."

You are one of the biggest financial influencers in the world. People can loose their homes or lives from the shit you’re promoting.

— The Chairman (@WSBChairman) May 17, 2021

Crypto influencer Ben Baller accused Portnoy of promoting SafeMoon because he had been given some of the tokens by the SafeMoon team. Portnoy denied this, stating: "I have no clue who the founders are. I wasn't paid to promote it."

That’s cap. They even reached out to me and offered me a billion coins. And I’m not anywhere near the influential level you’re at. I get you wanna make money but be transparent. You’re promoting it because they gave you a shit ton of their shit coins.

— BEN BALLER™ (@BENBALLER) May 17, 2021

And let me say this about #SAFEMOON I have no clue who the founders are. I wasn’t paid to promote it. I have no clue whether it’s the next big thing. I wanted to dabble with a shitcoin and picked that one. That’s it. I wanted one not on coinbase or Blockfolio yet.

— Dave Portnoy (@stoolpresidente) May 17, 2021

Experts have previously warned Newsweek about the risks associated with investing in cryptocurrency and particularly in coins that are subject to sudden hype.

Adrian Zduńczyk, founder of cryptocurrency educational hub YellowBlock and trade group The Birb Nest told Newsweek last week: "Aside from many valuable projects in the space improving decentralized finance ecosystem… the space has recorded an increase in the number of over-hyped coins which brought a lot of suffering to the investors due to so-called 'rug pulls' or bubble bursts."

Dave Portnoy
Dave Portnoy at the SiriusXM radio station in studios in New York City, November 2017. Portnoy is the founder of Barstool Sports. Slaven Vlasic/Getty