Longtime Ethereum supporter cites blockchain’s cost-based model and underperformance as reasons for exiting ETH position.
Longtime Ethereum advocate David Hoffman sold his entire ETH holdings on May 21, citing the token’s prolonged underperformance and the blockchain’s open-source economic model. Hoffman, who previously championed Ether’s investment case, did not disclose the value of his sale but emphasized Ethereum’s role as a cost-based provider of secure blockspace and tokenization, with layer-2 networks capturing most fees.
ETH has traded in a range for five years, lagging broader crypto market gains. Hoffman remains bullish on Ethereum’s long-term prospects but believes its token will reflect only a marginal share of the network’s success. Critics, including former Ethereum core developer Eric Connor, attributed ETH’s underperformance to selling pressure from early investors rather than fundamental flaws.
Reactions among ETH supporters were mixed, with some calling the move the “end of an era” while others acknowledged the token’s struggles relative to peers.