David Hoffman, co-founder of Bankless, has publicly disclosed his portfolio reallocation strategy following the complete liquidation of his Ethereum holdings. In a series of posts on X, Hoffman detailed that approximately 50% of the proceeds were immediately moved into VVV, NEAR, ZEC, and HYPE. The remaining 50% was initially held as a cash reserve for gradual deployment, which has since been entirely allocated to LIT.
Breakdown of the Allocation
The move did not come out of nowhere. On May 21, Hoffman had already confirmed that he had sold off all his ETH, subsequently publishing a lengthy explanation that framed the decision as deliberate rather than impulsive. He stressed that the exit was rooted in a reassessment of ETH's asset pricing, not a loss of faith in the Ethereum network itself.
In his commentary, Hoffman argued that the grand "ETH is money" narrative had not failed, but had been fully priced in and had reached its logical conclusion. The Ethereum network, he said, has achieved a valuation commensurate with its accomplishments, while the ETH token is unlikely to be repriced significantly—either upward or downward. He described a growing disconnect between the protocol's success and the token's market performance.
Network Optimism, Asset Pessimism
Even as he exited ETH entirely, Hoffman remained highly bullish on the Ethereum ecosystem, predicting that it will thrive. However, he emphasized that only a small fraction of that prosperity would continue to be reflected in the price of ETH. This outlook directly informed his shift from an ETH-heavy position to a diversified basket of tokens, along with the systematic deployment into LIT—illustrating a differentiated view of value within the Ethereum landscape.