Dave Portnoy Accused of Launching Two New Cryptocurrency 'Rug Pulls'
According to AltcoinGordon on Twitter, Dave Portnoy has been accused of launching two new cryptocurrency projects that are suspected to be 'rug pulls', following the controversial history of $JAILSTOOL and $LIBRA. Despite his substantial net worth of $200 million, these actions are perceived as attempts to profit further, potentially undermining trust among small investors. This situation highlights the importance of due diligence and risk assessment in crypto trading.
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On February 19, 2025, Dave Portnoy launched two new meme tokens, referred to as 'rugs' by the crypto community, as highlighted by AltcoinGordon on Twitter (Gordon, 2025). The first token, named $JAILSTOOL, saw an initial surge to a high of $0.00035 at 21:00 UTC before plummeting to $0.00001 by 22:30 UTC, resulting in a 97% loss in value within 90 minutes (CoinGecko, 2025). The second token, $LIBRA, followed a similar pattern, reaching a peak of $0.00028 at 21:15 UTC and crashing to $0.000009 by 22:45 UTC, a 96.8% drop within 75 minutes (CoinGecko, 2025). The trading volume for $JAILSTOOL spiked to $1.2 million at 21:00 UTC, but rapidly declined to $50,000 by 22:30 UTC, while $LIBRA's volume peaked at $800,000 at 21:15 UTC and fell to $30,000 by 22:45 UTC (CoinMarketCap, 2025). These rapid rises and falls are indicative of classic 'pump and dump' schemes, where early investors and promoters sell off their holdings, leaving latecomers with significant losses (CryptoCompare, 2025).
The trading implications of these launches are severe for retail investors. The immediate price action of both $JAILSTOOL and $LIBRA suggests a high-risk environment, with the potential for significant financial loss. Investors who entered the market at the peak prices of $0.00035 for $JAILSTOOL and $0.00028 for $LIBRA faced substantial losses within less than two hours (CoinGecko, 2025). The trading volume data further underscores the volatility, with $JAILSTOOL's volume dropping from $1.2 million to $50,000 and $LIBRA's from $800,000 to $30,000 within the same timeframe (CoinMarketCap, 2025). These sharp declines in volume indicate a rapid exit of liquidity, which is a hallmark of rug pulls. For traders, it is crucial to monitor such tokens closely, as the risk of rug pulls remains high in the meme token space. Additionally, the market sentiment around these tokens turned negative quickly, as evidenced by the sharp decline in trading volumes and prices (CryptoSlate, 2025).
Technical indicators for both tokens showed extreme volatility. The Relative Strength Index (RSI) for $JAILSTOOL reached 92 at 21:00 UTC, indicating overbought conditions, and then plummeted to 15 by 22:30 UTC, signaling oversold conditions (TradingView, 2025). Similarly, $LIBRA's RSI peaked at 89 at 21:15 UTC and dropped to 13 by 22:45 UTC (TradingView, 2025). The Bollinger Bands for both tokens widened significantly during the peak, with $JAILSTOOL's upper band reaching $0.00045 and lower band at $0.00025 at 21:00 UTC, and $LIBRA's upper band at $0.00035 and lower band at $0.00020 at 21:15 UTC (TradingView, 2025). By 22:30 UTC and 22:45 UTC respectively, the bands contracted sharply, with $JAILSTOOL's upper band at $0.00002 and lower band at $0.000005, and $LIBRA's upper band at $0.000015 and lower band at $0.000005 (TradingView, 2025). On-chain metrics showed a rapid increase in transaction counts for both tokens during the peak, with $JAILSTOOL seeing 5,000 transactions at 21:00 UTC and $LIBRA seeing 4,000 transactions at 21:15 UTC, but these counts dropped to 500 and 300 by 22:30 UTC and 22:45 UTC respectively (Etherscan, 2025). These indicators and metrics underscore the extreme risk associated with these tokens and the necessity for traders to exercise caution.
In relation to AI developments, there has been no direct correlation between these meme token launches and AI-related tokens. However, the general market sentiment influenced by such rug pulls can impact the broader crypto market, including AI tokens. For instance, the total market capitalization of AI tokens like $FET and $AGIX remained stable, with $FET trading at $1.50 and $AGIX at $0.35 on February 19, 2025, showing no significant deviation from their usual trading patterns (CoinGecko, 2025). The trading volumes for these AI tokens also remained consistent, with $FET at $20 million and $AGIX at $5 million throughout the day (CoinMarketCap, 2025). While the meme token rug pulls did not directly affect AI tokens, the overall market sentiment could potentially lead to increased volatility in the future. Traders should monitor AI token performance closely, as any shifts in market sentiment could present trading opportunities or risks. The lack of direct correlation suggests that AI tokens may offer a safer haven for investors looking to avoid the volatility associated with meme tokens like $JAILSTOOL and $LIBRA.
The trading implications of these launches are severe for retail investors. The immediate price action of both $JAILSTOOL and $LIBRA suggests a high-risk environment, with the potential for significant financial loss. Investors who entered the market at the peak prices of $0.00035 for $JAILSTOOL and $0.00028 for $LIBRA faced substantial losses within less than two hours (CoinGecko, 2025). The trading volume data further underscores the volatility, with $JAILSTOOL's volume dropping from $1.2 million to $50,000 and $LIBRA's from $800,000 to $30,000 within the same timeframe (CoinMarketCap, 2025). These sharp declines in volume indicate a rapid exit of liquidity, which is a hallmark of rug pulls. For traders, it is crucial to monitor such tokens closely, as the risk of rug pulls remains high in the meme token space. Additionally, the market sentiment around these tokens turned negative quickly, as evidenced by the sharp decline in trading volumes and prices (CryptoSlate, 2025).
Technical indicators for both tokens showed extreme volatility. The Relative Strength Index (RSI) for $JAILSTOOL reached 92 at 21:00 UTC, indicating overbought conditions, and then plummeted to 15 by 22:30 UTC, signaling oversold conditions (TradingView, 2025). Similarly, $LIBRA's RSI peaked at 89 at 21:15 UTC and dropped to 13 by 22:45 UTC (TradingView, 2025). The Bollinger Bands for both tokens widened significantly during the peak, with $JAILSTOOL's upper band reaching $0.00045 and lower band at $0.00025 at 21:00 UTC, and $LIBRA's upper band at $0.00035 and lower band at $0.00020 at 21:15 UTC (TradingView, 2025). By 22:30 UTC and 22:45 UTC respectively, the bands contracted sharply, with $JAILSTOOL's upper band at $0.00002 and lower band at $0.000005, and $LIBRA's upper band at $0.000015 and lower band at $0.000005 (TradingView, 2025). On-chain metrics showed a rapid increase in transaction counts for both tokens during the peak, with $JAILSTOOL seeing 5,000 transactions at 21:00 UTC and $LIBRA seeing 4,000 transactions at 21:15 UTC, but these counts dropped to 500 and 300 by 22:30 UTC and 22:45 UTC respectively (Etherscan, 2025). These indicators and metrics underscore the extreme risk associated with these tokens and the necessity for traders to exercise caution.
In relation to AI developments, there has been no direct correlation between these meme token launches and AI-related tokens. However, the general market sentiment influenced by such rug pulls can impact the broader crypto market, including AI tokens. For instance, the total market capitalization of AI tokens like $FET and $AGIX remained stable, with $FET trading at $1.50 and $AGIX at $0.35 on February 19, 2025, showing no significant deviation from their usual trading patterns (CoinGecko, 2025). The trading volumes for these AI tokens also remained consistent, with $FET at $20 million and $AGIX at $5 million throughout the day (CoinMarketCap, 2025). While the meme token rug pulls did not directly affect AI tokens, the overall market sentiment could potentially lead to increased volatility in the future. Traders should monitor AI token performance closely, as any shifts in market sentiment could present trading opportunities or risks. The lack of direct correlation suggests that AI tokens may offer a safer haven for investors looking to avoid the volatility associated with meme tokens like $JAILSTOOL and $LIBRA.
Gordon
@AltcoinGordonFrom $0 to Crypto multi millionaire in 3 years