Bankless founder David Hoffman explained on X the reasons for selling (fully liquidating) ETH: he still believes in the Ethereum network and ecosystem, but thinks ETH, as an asset, is unlikely to be structurally re-priced much further. Therefore, he sold and redirected the funds to other opportunities he considers better. He noted that the fat-app theory and a Rollup-centered roadmap will allow L2 to achieve profit margins of up to 97%, but the narrative of ETH as a currency has essentially been completed.

MeNews

2026-05-27 03:31:26

Abstract generation in progress

ME News Report, May 27 (UTC+8), Bankless founder David Hoffman posted on X explaining his reasons for liquidating his ETH holdings. Hoffman wrote: "I remain extremely optimistic about the Ethereum network and the entire ecosystem ------ Ethereum's architecture is designed to maximize the success probability of its applications, L2s, and ecosystem. The 'fat-app' theory suggests that applications on Ethereum can capture the vast majority of fee revenue; while the 'centered around Rollups' roadmap means L2s can achieve profit margins of up to 97%. But regarding ETH as an asset itself, I find it increasingly unlikely that it will be revalued (rerate) by the market at a structural level ------ whether upward or downward. So, I sold my ETH not because I am bearish on ETH, but because I believe the narrative 'ETH is Money' (ETH as currency) has essentially played out. I want to allocate my funds into other opportunities I see in the market." (Source: ChainCatcher)

ETH-0.31%

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LightsInTheMistyValley

· 11h ago

His operation means: Ethereum is successful, but the ETH ticker is not.

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BlackVelvetBluePeony

· 14h ago

L2 vampirism has been a topic of debate in the community for a long time; David directly presents the data.

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GateUser-e130bc45

· 14h ago

He was all in on ETH early on, and now he’s turned around—this cycle-awareness is fully dialed in.

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GateUser-d6fb8ff1

· 14h ago

After reading, I feel even more confused. Should I bet on the network or on assets?

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TheHotAirBalloonRisesAboveThe

· 14h ago

97% profit margin... The Ethereum Foundation would be speechless.

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FlowingColorfulInkHeart

· 14h ago

ETH as an asset and as a network should indeed be viewed separately; many people confuse the two.

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TokenTinkerTao

· 14h ago

If the fat-app theory holds, L2 tokens are the future alpha.

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PineLiquidityPool

· 14h ago

Is this considered an official endorsement of ETH entering the second half of its value storage phase?

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TidalShell

· 14h ago

What are the other opportunities—Solana, BTC, or AI coins?

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ChillBlock

· 14h ago

Structural re-pricing is difficult; in plain language, it means the big players no longer have the motivation to pump the market.

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Bankless Founder Discusses Selling Out ETH: Still Bullish on the Ethereum Network, but ETH Is Hard for the Market to Reprice

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