Eric Trump praised Dave Portnoy's million-dollar buy the dip on XRP as a "smart trade"

On November 17, 2025, Barstool Sports founder Dave Portnoy made a lightning purchase of $2 million in crypto assets during a big dump in the market, which included $1 million in XRP. President Trump's son Eric Trump publicly praised it as a “smart trade.” Monitoring data shows that Portnoy completed the XRP Build a Position in two transactions within two minutes from 18:36 to 18:37 that evening, while also allocating $750,000 in Bitcoin and $400,000 in Ether.

This operation comes at a time when the crypto assets market is experiencing a big dump — XRP has fallen 10.3% to $2.14 over the week, and Bitcoin's monthly decline has reached 18.5%. Portnoy previously expressed “frustration” for missing the rebound due to an early sell-off of XRP, and this large acquisition shows his strong belief that the bottom region has appeared.

Portnoy Trading Details and Market Timing

Dave Portnoy, as a popular trader with 3.7 million X fans, is known for his high-profile and precise operations. On the evening of November 17, he implemented a typical “bloodbath” strategy, taking advantage of market panic to allocate 2 million dollars in Crypto Assets in a very short time. Trading records show that at 18:36, he first bought 500,000 dollars in XRP, and a minute later added an equivalent position, bringing the total XRP holding to 1 million dollars. Immediately after, at 18:37, he purchased 750,000 dollars in Bitcoin and 400,000 dollars in Ethereum, overall executing the trades smoothly.

This concentrated position-building method reflects Portnoy's unique understanding of market timing. In subsequent videos, he explained that when most investors sell out of fear, it is precisely the moment when the “great white shark” strikes. Historical data shows that Portnoy publicly expressed his favor for XRP in May 2024, but at that time, he sold too early at 2.4 dollars due to concerns about negative news, missing the subsequent rise to 3.65 dollars. This large purchase can be seen as a correction of his previous mistake and also shows that he believes XRP has a significant risk-reward ratio at the current price level.

From the market environment perspective, Portnoy indeed seized the short-term low point for trading. Within 24 hours after his purchase, XRP rebounded by 8.7%, Bitcoin rose by 6.2%, and Ethereum increased by 5.8%. This accuracy is not a coincidence—Portnoy has long advocated for a contrarian investment strategy and has a professional team to assist in analyzing market data. However, analysts remind that individual investors should be cautious of herd behavior, as Portnoy's operational scale and market influence can create a self-fulfilling prophecy effect.

Analysis of Trump Family's Participation in the Encryption Market

Eric Trump's public endorsement of Portnoy's trades continues the Trump family's active involvement in the cryptocurrency space. As the second son of former President Trump, Eric has frequently spoken out about digital currencies in recent years, predicting in August 2024 that Bitcoin could reach $170,000 by the end of the year, and even looking long-term at $1 million. This optimistic prediction is closely related to the Trump family's political strategy—multiple polls show that cryptocurrency holders make up a significant portion in key swing states and tend to support candidates who are friendly to the industry.

The connection between the Trump family and the crypto ecosystem is not limited to rhetoric. The DeFi project World Liberty Financial supported by their family, (WLFI), has recently attracted attention due to a security incident, and Eric's brother Donald Trump Jr. is a co-founder of the project. This deep involvement means that the comments made by the Trump family regarding crypto often have a dual nature: they represent both market opinions and the statements of commercial stakeholders. Observers note that Eric's praise of Portnoy occurred during a challenging time for WLFI, possibly aimed at diverting attention or reshaping market confidence.

Historically, the Trump family's crypto-related comments often coincide with market cycle lows. After the FTX collapse in November 2022, Trump Jr. publicly criticized excessive regulation, and the market subsequently began a rebound. The current situation bears similarities—after a series of market declines, the Trump family's positive comments may indicate that they believe the risks have been fully released. However, whether this correlation has statistical significance still requires more data verification.

Dave Portnoy Crypto Assets portfolio composition

• XRP Position: 1 million USD (purchased in two transactions of 500,000 each, average price approximately 2.14 USD)
• Bitcoin Position: 750,000 USD (price approximately 90,900 USD)
• Ethereum Position: 400,000 USD (price approximately 3038 USD)
• Total Scale: 2.15 million USD (stated in the video as “over 2 million”)
• Time Window: Complete all Build a Position operations within 2 minutes.

Compared to other celebrity investors, Portnoy's operations are more transparent and educational. He publicly documents his decision-making process through videos and explains his investment philosophy driven by “FOMO” (fear of missing out). This style is highly influential among retail investors, but it has also attracted regulatory attention — the SEC has warned that influencers promoting financial products may violate securities laws. However, XRP currently has a clear legal status that does not classify it as a security, reducing associated risks.

XRP Fundamentals and Ecosystem Development Status

Setting aside the celebrity effect, the fundamental factors of XRP itself support the optimistic sentiment of some investors. Although the price has retraced over 40% from the 2024 peak of $3.65, on-chain activity remains stable. Ripple's quarterly report shows that its XRP-based cross-border payment solution On-Demand Liquidity (ODL) has reached a record high in quarterly processing volume, with major partners including financial giants such as American Express and Santander Bank.

From a legal standpoint, the long-term litigation between Ripple and the U.S. Securities and Exchange Commission made a decisive breakthrough in July 2024, with the judge ruling that XRP does not constitute a securities offering in programmatic sales. This ruling cleared the biggest obstacle for institutional adoption, leading several exchanges to relist XRP trading pairs, significantly improving market maker liquidity. However, regulatory risks have not been completely eliminated - the SEC may still appeal, and the recent lawsuit against former Ripple executives could introduce uncertainties.

In terms of technological development, the AMM (Automated Market Maker) feature of the XRP Ledger was successfully activated in October 2024, introducing DeFi capabilities to the ecosystem. Currently, over 150 million XRP have been deposited into the AMM pool, accounting for approximately 1.5% of the total supply. At the same time, Ripple's CBDC (Central Bank Digital Currency) pilot program has expanded its scope, entering the second phase of cooperation with countries such as Montenegro and Colombia. Although these advancements have not been fully reflected in the price, they provide support for long-term value.

Interpretation of Market Volatility Background and Capital Flows

The background of Portnoy's bold Build a Position is the general big dump in the crypto assets market. As of November 18, Bitcoin fell 12% to $90,919 during the week, Ethereum fell 11.77% to $3,038, and XRP fell 10.3% to $2.14. The monthly data is even more dismal—Bitcoin down 18.5%, Ethereum down 25.5%, and XRP down 13.14%. This synchronized fall is mainly due to macro pressures, including the Fed's hawkish statements and tightening dollar liquidity.

The capital flow data provides a more detailed picture. Bitcoin spot ETFs saw a net outflow of $1.2 billion in the second week of November, while CME Bitcoin futures open interest decreased by 23%, indicating a decline in institutional investors' risk exposure. Meanwhile, the perpetual contract funding rate turned negative, with the liquidation of leveraged long positions exceeding $600 million in a single day. This data suggests that Portnoy indeed entered the market against the trend during a period of extreme pessimism.

From an on-chain perspective, the number of addresses holding over 1 million XRP actually increased during the price fall, indicating that large holders are accumulating. Meanwhile, the XRP Network Value to Transactions (NVT) ratio dropped to 45, below the historical average of 60, suggesting that the network's usage value may be undervalued. Although these indicators do not guarantee an immediate rebound, they provide fundamental support for contrarian investors.

Research on Celebrity Effect and Retail Investor Behavior

The interaction between Portnoy and Eric Trump demonstrates the amplification effect of celebrity influence in the Crypto Assets market. Academic research shows that the public actions of influencer traders have a significant guiding effect on their fan base, especially in the altcoin market where information asymmetry is high. Within 1 hour of Portnoy's video release, retail buying of XRP on major exchanges increased by 230%, but this effect typically diminishes by over 70% within 24 hours.

This influencer economy carries significant risks. In 2021, Portnoy promoted the now-bankrupt FTX exchange, which subsequently drew criticism from investors. Regulatory agencies have also been closely monitoring the compliance of influencer financial advice, especially when potential conflicts of interest are involved. It is commendable that Portnoy's actions this time were completely transparent, and he clearly stated that his decisions were based on personal judgment rather than paid promotions.

The insight for ordinary investors is that celebrity operations can serve as a contrarian indicator of market sentiment or a learning case, but should not be simply imitated. Portnoy's investment scale only accounts for a small proportion of his net worth, and he has a professional team supporting him, which retail investors typically do not possess. A more rational approach is to focus on the logic of his strategy - allocating quality assets during market panic, rather than on specific target selection.

Investment Strategy Recommendations and Risk Management

In the current market environment, Portnoy's aggressive strategy is suitable for a specific group of investors. For participants with a higher risk tolerance and a longer investment horizon, building a position in high-quality crypto assets after a big dump indeed has statistical advantages. Historical data shows that investing in XRP when the Fear and Greed Index is below 30, with an average return rate of 65% over 90 days, has a win rate of 70%. However, the volatility is also relatively high, with a maximum drawdown potentially exceeding 30%.

From the perspective of asset allocation, the reasonable weight suggestion for XRP in a crypto assets investment portfolio is 5-15%, depending on risk preference. Due to its correlation with Bitcoin of about 0.7, the benefits of diversification are limited, but its narrative-driven characteristics can provide opportunities for excess returns. In terms of risk management, clear stop-loss positions should be set (for example, $1.8, a 15% drop from the current price), and regular rebalancing should be done to avoid excessive concentration in a single asset.

Tax considerations should not be overlooked. American investors need to pay attention to the application of wash sale rules in the crypto assets field, especially during year-end tax planning. Portnoy's video clearly records the trading times and prices, which is a discipline worth learning. At the same time, utilizing tax loss harvesting strategies can offset capital gains from other investments, but it is important to pay attention to the specific rules in different jurisdictions.

FAQ

How is Dave Portnoy's past record in Crypto Assets investment?

Portnoy has been investing in Crypto Assets since 2020, with early Bitcoin and Ethereum holdings yielding substantial profits, but there is a record of an early sell-off in XRP which caused him to miss out on gains, overall performing better than the market average.

What are the main risks currently facing XRP?

Including the potential appeal of the Ripple vs SEC lawsuit, concerns about centralization (Ripple holding a large amount of XRP), technological iterations of competing coins, and systemic risks in the overall Crypto Assets market.

How can ordinary investors avoid the herd risk brought by celebrity effects?

Insist on independent research, understand the fundamentals of the investment targets, control the position ratio of a single asset, set clear stop-loss levels, and avoid using leverage to imitate the operations of celebrities.

How much influence does Eric Trump's endorsement have on the market?

In the short term, it may boost retail investor sentiment, but medium to long-term prices still depend on fundamentals; it is important to note that statements from the Trump family may have multiple political and business purposes.

How is XRP progressing in the field of cross-border payments?

Ripple's ODL solution has been launched in over 20 countries, with quarterly processing volumes reaching new highs, yet its share of the total global cross-border payment volume remains negligible (below 0.1%).