Barstool Sports founder Dave Portnoy called into question Elon Musk activity with bitcoin late Monday, drawing a quick rebuke from the Tesla CEO.
Portnoy, aka @stoolpresidente, couched his criticism as a question, saying in a tweet “Am I understanding this correctly? Elon Musk buys bitcoin. Then pumps it. It goes up. Then he dumps it and makes a fortune.
Musk replied to the tweet saying “No you are not.” And went on to say that he continues to hold bitcoin.
Musk has tweeted about other cryptocurrencies over the past few months, including Dogecoin, whose price has soared in recent weeks. Musk tweeted about it in early February and again earlier this month. Dogecoin, which has no limit on the number of altcoins that can be created, was begun as a satire in 2013. It has soared from less than one cent to as high as 43 cents so far this year, according to Coinbase data.
The excitement around the recent IPO of Coinbase (COIN) - Get Report, the largest U.S. cryptocurrency exchange, has boosted interest in cryptocurrencies in general. Its stock, however, has faltered since coming public through a direct listing. It ended its first day of trading on April 14 at $328.28. Coinbase ended Monday up 4.4% at $304.54.
In March, Federal Reserve Chairman Jay Powell said the central bank is looking at a digital dollar but is in no hurry to launch one. He said cryptocurrencies are generally acting as a substitue for gold.
"Crypto assets are highly volatile --see Bitcoin -- and therefore not very useful as a store of value, and they're not backed by anything," Powell said at the time. "It's more a speculative asset. It's essentially a substitute for gold rather than for the dollar."