Bankless cofounder exits ether positions after thesis shift
David Hoffman, cofounder of Bankless, sold all of his ether holdings in mid May after years of public support for Ethereum. The move marked a clear break from one of the most visible long term advocates of the asset. He confirmed the decision through public statements and later interviews, drawing attention across the crypto sector.
Hoffman argued that his investment thesis on ether no longer held. He said the idea that ether functions as “money” within the ecosystem had weakened. In his view, value creation is shifting toward layer 2 networks and decentralized applications rather than the base token itself. He stated that he still believes in Ethereum as a network but no longer expects that success to translate directly into price appreciation for ether.
Following the sale, Hoffman allocated roughly half of the proceeds into a mix of alternative crypto assets including VVV, NEAR, ZEC, HYPE, and LIT. The rest of his repositioning reflects a broader shift away from concentrated exposure to ether toward a diversified set of ecosystem and infrastructure bets. The allocation signals confidence in specific segments of the crypto stack rather than a single dominant asset.
The disclosure came during a period of weakness in ether markets. Prices had fallen sharply from recent highs amid broad risk reduction across digital assets. Market data showed large scale liquidations totaling around 1.8 billion dollars, alongside renewed outflows from exchange traded crypto products and rising macroeconomic uncertainty. On chain indicators also showed an increase in ether balances on exchanges to around 7.5 million units, a pattern often associated with selling pressure.
The decision triggered debate within the Ethereum community. Supporters of the network pointed to continued growth in usage and development activity. Critics focused on whether the token structure adequately captures the value created by the ecosystem. The episode highlighted a long standing tension between infrastructure expansion and token value accrual.
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