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Bankless co-founder David Hoffman said in a May 29 interview with Unchained that he has sold his entire ETH position, framing the decision as opportunity cost rather than a thesis change on Ethereum.
Hoffman, who goes by @TrustlessState, pushed back on the "defector" label and said he is not bearish on the network itself. The core of his argument is that he sees better risk-adjusted returns elsewhere — a portfolio decision, not a protocol verdict.
Why it matters
Bankless was built around the thesis of ETH as money, so Hoffman's exit carries symbolic weight beyond its dollar size. He added that he now views Ethereum as difficult to re-rate, arguing the network lacks the coordination and execution needed to recapture its earlier cycle's momentum.
Market impact
A founder publicly leaving a position he once staked his brand on is the kind of signal the market discounts slowly and remembers quickly. ETH bulls will note Hoffman denied a bearish thesis; ETH bears will note the operational critique — that Ethereum's execution gap is now being priced in by its own long-time advocates.
Frequently asked questions
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Why did David Hoffman sell all his ETH?
Hoffman told Unchained on May 29 that he sold his entire ETH position because of opportunity cost — he sees better risk-adjusted returns elsewhere — not because he is bearish on Ethereum itself.
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Did Hoffman say he is bearish on Ethereum?
No. He rejected the "defector" label and said the sale is a portfolio decision, not a thesis change on the network, though he added that he now views ETH as difficult to re-rate.
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What did Hoffman say about Ethereum's ability to re-rate?
Hoffman said Ethereum lacks the strong coordination and execution needed to regain its unique earlier momentum, making a sustained re-rating difficult from here.
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Why does this matter beyond Hoffman's personal position?
Bankless was built around the thesis of ETH as money, so a co-founder publicly exiting the asset he once staked his brand on carries symbolic weight for the Ethereum community and the broader market narrative.
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How is the crypto community likely to read this signal?
ETH bulls will point to Hoffman's denial of a bearish thesis as the headline; ETH bears will emphasize his critique of Ethereum's execution gap as the more durable signal that long-time advocates are rotating out.
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