Barstool Sports founder Dave Portnoy said Wednesday that any true believer in cryptocurrencies should be loving today’s crash because they can scoop up more coins at a discount.
“I’m still in on crypto,” Portnoy said in a video posted on Twitter. “I believe buy the dips. I do believe that there’s a fundamental — if you like crypto, if you’re a believer in crypto, you should never be happier than today because you can get it on discount.”
The entire crypto market is down about 25 percent, or over $400 billion, in the past 24 hours, according to data from coinmarketcap.com
“Yeah, we’re in the danger zone,” Portnoy said in a video posted earlier Wednesday as the song by Kenny Loggins played. “Crypto is falling apart as we speak.”
“The great bubble — has it burst?” he asked.
It’s unclear exactly how much money Portnoy has tied up in cryptocurrencies — and how much he stood to lose in Wednesday morning’s crash.
However, he announced Monday that he invested $40,000 in SafeMoon, a small cryptocurrency with a market cap of about $3.4 billion.
SafeMoon fell over 30 percent Wednesday morning.
He also announced in April that he bought “one bitcoin when it was at $48,000.” He added that he sold his holdings of Dogecoin to purchase bitcoin.
Bitcoin was down over 26 percent Wednesday.
Portnoy has clashed recently with fellow crypto-enthusiast Elon Musk, who recently announced that Tesla suspended use of bitcoin as payment for its vehicles. The announcement sent the price of bitcoin down last week, irking some of Musk’s supporters, including Portnoy.
“Elon Musk just tried to tank Bitcoin,” Portnoy said. “Yeah, the same Elon Musk who had Bitcoin on Tesla’s spreadsheet and their balance sheet so Tesla can show a profit at the end of a quarter because they’re not selling cars, now suddenly Bitcoin’s bad.”
He added that Musk has been “pulling the levers like the Wizard of Oz on crypto.”
“This is bulls—,” Portnoy said, describing himself as a former “Elon fanboy.”
“This move Elon’s doing, up and down and changing markets, shady sh–, shady sh–,” he added.
A variety of bad news over the past week could have sparked Wednesday’s crypto sell-off, including Musk’s announcement last week, which wiped about $300 billion off the cryptocurrency market that day.
But also spooking investors is that three Chinese banking and payment industry bodies issued a statement Tuesday warning financial institutions not to offer clients any service involving cryptocurrency, including registration, trading, clearing and settlement.
“Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order,” they said in the statement.
China has already banned crypto exchanges and initial coin offerings but has not barred individuals from holding cryptocurrencies.