Dave Portnoy’s Jailstool crashes by over 1000% in 1 hour after 2,600,000% gain yesterday

Dave Portnoy’s beloved meme coin, Jailstool, fell off a cliff today, crashing over 1000% in a brutal one-hour wipeout even after he kept posting about it and reiterating his promise to not sell until market cap reaches $1 billion.

Less than a day after Dave hyped the token through non-stop tweets and an X Space session with 3.5 million followers, Jailstool’s price tanked from $0.15 to $0.08, and its market cap (which surged to $220 million overnight) now stands at a dismal $35 million, according to data from CoinGecko.

From meme coin glory to disaster

The madness kicked off when Dave tweeted that if Jailstool could hit #1 on X’s trending list within 20 minutes, he would stay up all night promoting it. “If not, I’m going to bed,” he warned. Crypto traders took him seriously. They flooded the platform, spammed the hashtag, and got it trending in no time.

Dave kept his promise, staying online and hyping the coin like a man on a mission. “I was invited to SI Party, GQ party, 11 party, etc.,” he tweeted. “But there’s no place I’d rather be than laying in bed in the dark right now pumping Jailstool.”

With the hype machine running at full speed, the coin’s market cap exploded by 119,000% in just five hours, while its price skyrocketed by 2.6 million percent in 24 hours. But as fast as it went up, it came crashing down. By morning, the coin had lost over 1000% of its value, and traders were scrambling to make sense of the carnage.

Yesterday during the mania, Dave revealed that a whale had bought between $7 million and $8 million worth of Jailstool. “That’s fucking nuts,” Dave tweeted. “They are now the largest coinholder. Welcome?! Is this good? Hopefully, he’s a good whale like Willy and not a d*ckhead whale.” Guess what? Yeah, he was a d*ckhead whale.

Kraken listed Jailstool during the height of the hype, but that, too, failed to prevent the crash. “I put hundreds of thousands of my own money into Jailstool and promised up to $1 million more as it grew. I promised not to take any out till the market cap hit $1 billion,” Dave said during the crash. “I coulda cashed out for $6 million. I didn’t. But I’m not just gonna promote forever for free while sharks eat minnows. I’ve done exactly what I promised to do, like I always do. 100% transparent.”

The crash of course ignited a firestorm on social media, with traders blaming everything from Dave’s mixed signals to market manipulators. One user told Dave, “The coin died because you said you’re still considering launching your own and that this was a learning experience. That told people this was temporary and Jailstool was not a long-term coin. I’m just being real with you.”

Another trader said, “F*ck it, I just aped back in. We trust Dave.” The trust wasn’t universal, though. Critics pointed out that Dave’s constant mentions of launching another coin spooked investors and triggered the sell-off.

One suggestion gained traction among traders: Dave should drop a portion of any new coin he creates directly to Jailstool holders. “It’s a win-win and allows both to do well. Instant distribution to 100,000 holders,” one user said.

Despite the crash, Dave insisted he wasn’t abandoning the project. “Facts,” he replied to a supportive comment. “Regardless of what I do, I will continue to root for Jailstool and honor every commitment I made. If it goes to a $200 million market cap again, I’ll dump $100k into it. I won’t sell a dime till $1 billion. I’m still holding it all. Coulda sold at $6 million. Didn’t. Just not gonna break my ass so sharks can profit off me.”

But even with his reassurance, the community was divided. Some blamed KOLs (key opinion leaders) for shorting Jailstool into oblivion. User Chrissy suggested that Dave secretly buys up the supply and declares Jailstool his official coin. “If you want a MAJOR short squeeze, why don’t you secretly buy up the supply, then claim this as the official coin and you’ll get your billions plus more!!”

Gigi, another supporter, praised Dave’s transparency and vision. “While there is an aggressive rotator’s market right now, we see what you’re doing and how you’re trying to do it the right way. You have my full support on making this the token that helps the normies onboard. We need more people like you here,” she said.

At press time, jailstool was worth $0.32, down over 3000% in the past twenty-four hours.

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