David Hoffman reveals reasons behind selling his entire Ethereum position
The co-founder of Bankless, David Hoffman, has disclosed that he liquidated his complete Ethereum portfolio, citing that the opportunity for ETH to experience a market revaluation "appears to be diminishing."
A prominent Ethereum supporter and co-founder of Bankless media company, David Hoffman, has revealed that he divested his complete Ether (ETH) portfolio during the previous week, citing his conviction that the "ETH is Money" investment narrative has essentially "run its course."
In a Tuesday post on X, Hoffman stated that "Ethereum has achieved the ETH valuation it merits, and I don't anticipate ETH experiencing a revaluation as an asset, whether upward or downward."
According to Hoffman, Ethereum "has performed remarkably well, and warrants the market capitalization that it currently holds," though the "opportunity window for ETH to receive a 'revaluation' by the market appears to be narrowing."
"ETH is, to some degree, money. But not the maximally successful version that we collectively sought out to achieve."
The investment philosophy known as "ETH is Money" posits that the token represents a more effective store of value when compared to traditional fiat currencies, given its decentralized nature and the introduction of various mechanisms designed to address inflation, or the generation of new tokens.
Numerous Ether supporters had anticipated the token would climb into the high five-figure range, yet ETH only managed to hit an all-time high slightly under $5,000 in August, roughly matching its previous bull market zenith from the earlier cycle. Subsequently, it has declined nearly 60% from that peak to currently trade in the vicinity of $2,000.
A longtime Ethereum enthusiast who has penned numerous articles about the investment rationale for Ether, Hoffman publicly disclosed on May 21 that he had sold his complete ETH holdings, though he did not reveal their monetary value.
According to his explanation, Ethereum functions as a "giver, not a taker," delivering secure blockspace and tokenization services at cost price, while the blockchain's layer-2 solutions absorb the majority of fees and reap the rewards.
"Ethereum takes no markup for anything it does. This is the nature of open source software, and this is the power of Ethereum. Ethereum supplies its full set of incredibly important values to the world… at cost."
Hoffman emphasized that he remains "massively bullish" regarding Ethereum, anticipating that the network will perform "exceptionally well from here on out," though only a "marginal amount" of that achievement will translate into its token value.
The announcement of Hoffman's divestment elicited diverse responses from ETH supporters, with his Bankless co-founder Ryan Sean Adams characterizing it as the "end of an era."
Eric Connor, a former Ethereum core developer, commented that he didn't particularly fault Hoffman given that ETH has "grossly underperformed the general crypto market for many years now."
Connor pointed to the selling pressure generated by the substantial number of millionaires produced during Ethereum's dramatic early price surge as the primary factor, rather than any fundamental weaknesses in the protocol itself.
"At the end of the day, maximalism to a single coin when it comes to portfolio management is pretty silly," he said.