Bankless Founder Liquidates ETH Holdings, Ethereum Faith Collective Disillusioned

Original｜Odaily ( @OdailyChina)

Author｜Wenser ( @wenser 2010 )

ETH is once again facing a "crisis of faith." This time, the spark was ignited by Bankless, a crypto media outlet that has long championed Ethereum. Co-founder David Hoffman proactively announced that he had "sold his last ETH." Community user @Ox_Lucas also exposed that Bankless had recently laid off most of its team members. Undoubtedly, "the loyal Ethereum guard has met its moment of departure."

In 2026, the wave of tokenization of US stocks is surging, and crypto ETFs have become a standard institutional asset. This should have been Ethereum's moment in the sun. However, the discrediting of the L2 roadmap, a wave of high-level departures from the Foundation, and the reality of ETH price following downturns but not upturns have left it in a rather awkward position.

David Hoffman's liquidation may well mark the beginning of "the Ethereum guard's exit."

Co-founder Steps Back, Bankless Enters Its Second Phase

Newcomers might not be very familiar with Bankless. Since its founding in 2020, it has consistently been the "mouthpiece media" for the Ethereum ecosystem. The Bankless DAO, established on the foundation of this media, was once the "number one community among DAO organizations." But now, Bankless has concluded its "first phase" of development and must inevitably enter its second phase.

After David Hoffman's post about liquidating his ETH, Ryan Sean Adams, another co-founder of Bankless, quickly followed up, stating: "It's time to be public. The first era of Bankless is over. This has been a six-year collaboration between David and I exploring crypto, DeFi, and Ethereum maximalism. We are now in the second era.

In this era, I plan to step into the background and support David as he explores new frontiers in crypto and beyond. I will still host the podcast weekly (never miss a recap meeting), but my role in content direction and guest interviews will decrease. David continues to steer the ship, and I fully support him. Personally, I am still bullish on ETH and bullish on Bankless."

Six years after its inception, Bankless has achieved remarkable success: besides interviews with prominent figures like Vitalik, Chris Dixon, and Hayden Adams, the media outlet has accumulated 280,000 YouTube subscribers and a newsletter readership of 350,000; its podcast has garnered high ratings of 4.7 on platforms like Spotify and Apple Podcasts, and has been listed by multiple outlets in their "Top 10 Best Crypto Podcasts," with many calling it the "ultimate guide to Web3 education."

Yet today, David Hoffman's dissatisfaction is palpable, so much so that he resorted to "liquidating his ETH" to express his stance, directing his criticism squarely at the Ethereum Foundation.

"When the Most Loyal Ethereum Guard Decides to Liquidate ETH": Bankless Co-founder Blasts the Ethereum Foundation

Following David Hoffman's post, it quickly sparked heated discussion within the Ethereum community. Some teased him, saying his pattern of "leaving the Ethereum ecosystem and coming back" is a regular occurrence, calling him a "seasonal barometer," and suggesting that when he turns bullish on ETH again, it would be a sign that the market has peaked and caution is needed.

In response, David Hoffman stated directly: "I have always supported the Ethereum blockchain network, but the ETH asset is becoming increasingly questionable. Let's not conflate the two."

Following that, a community member pointedly asked: "So you support ETH but doubt the Ethereum Foundation?"

David Hoffman's answer was not evasive. He said, "Unfortunately, you cannot separate the price performance of ETH from its leadership." His discontent with the "flagship leader," the Ethereum Foundation, was evident.

Notably, this is not the first time David Hoffman has expressed dissatisfaction with the Ethereum Foundation:

• Last April, when the price of ETH fell below $1,500, he publicly stated, "Ethereum's leadership and culture are driving away users and developers";
• Last October, the departure of Ethereum Foundation researcher Dankrad Feist also led him to express concerns about the brain drain in the Ethereum ecosystem;
• This March, in his article "The EF's Endless Manifestos," he directly attacked the Ethereum Foundation for "not working hard enough to expand Ethereum's market."

As it stands now, David Hoffman's attitude towards ETH and the Ethereum Foundation has long since transitioned from "sorrow over its lack of ambition, anger over its misfortune" to "the bitterest grief is surpassing despair."

On the other side of the story, naturally, lies ETH and the Ethereum Foundation's own "lack of progress."

According to Coinglass data, the ETH/BTC exchange rate once fell to 0.02835 on May 12, hitting its lowest level since July 2025, a cumulative decline of over 35% from its August 2025 high of 0.04324.

Meanwhile, the Ethereum Foundation is also experiencing a wave of departures: On May 19, Ethereum Foundation researchers Carl Beek and Julian Ma officially announced they would be leaving. The former had served in the organization for seven years, while the latter worked at the Ethereum Foundation for four years, accompanying it through thousands of days and nights.

Prior to this, several high-ranking executives and researchers from the Ethereum Foundation had already departed, including co-executive director Tomasz K. Stańczak who left in February, Josh Stark who left in March, and Protocol team leads Barnabé Monnot, Tim Beiko, and Alex Stokes who stepped down earlier this month. At least 8 high-level individuals have left the Ethereum Foundation this year.

Astoundingly, the primary reason behind these departures seems to be absurd triggers like the Ethereum Foundation requiring employees to sign loyalty oaths, a situation both ridiculous and perplexing.

Considering the Ethereum Foundation's continued selling of ETH regardless of bull or bear markets, and even its direct over-the-counter (OTC) trade with the Ethereum DAT treasury company Bitmine, this organization can be said to have lost its "last bit of core base." With internal talent draining and external competition lacking, the future of the Ethereum Foundation appears even bleaker than that of Bankless.

Beyond DAT, What's the Next Solution for Ethereum?

Last April, after attending an ETH Hangzhou offline event, this author wrote an article based on interviews titled 《ETH Hangzhou On-site Survey: Ethereum Enters Middle Age, No Hope for New Price Highs in Three Years》. At that time, ETH's price was also struggling around the breakeven point, and many held little hope for its future performance. However, with the DAT craze hitting in June and July, buy orders from listed companies like Bitmine and Sharplink still managed to push ETH's price up to nearly $5,000.

Now, ETH's price has been cut by over 50% from its high. The difference is that when people discuss Ethereum now, they no longer see it as the sole answer for "new financial infrastructure." The L2 roadmap has been thoroughly discredited, and Hyperliquid has become the new "on-chain infrastructure." What is the next solution waiting for ETH and Ethereum? No one can give a definitive answer.

Compared to the past where token prices fell but ecosystem development was in full swing, perhaps the currently stagnant Ethereum ecosystem is what is truly despairing. David Hoffman liquidating his ETH might have its own reasons, but his gradual distancing from the Ethereum ecosystem has become an undeniable fact.