Bankless co-founder David Hoffman has disclosed how he redeployed capital after promoting ETH, revealing a brand new portfolio tilted towards VVV, NEAR, ZEC, HYPE and LIT. The transfer marks a notable shift for one in all Ethereum’s most recognizable public advocates and has triggered debate over whether or not Hoffman is rotating into a brand new long-term thesis or chasing a special phase of the market.
In a publish on X, Hoffman mentioned he “instantly took ~50% of the capital to VVV, NEAR, ZEC, HYPE” after promoting ETH. The opposite half, he mentioned, was held again for dollar-cost averaging into an asset that had not already moved sharply increased.
“I left the remaining as capital to DCA into one thing not already up multiples,” Hoffman wrote, including that NEAR was an exception as a result of it was “~1.40 on the time.” He then mentioned he had accomplished that second leg of the rotation: “I’ve completed shopping for LIT with that remaining 50%.”
Why Hoffman Selected LIT As Subsequent Main Crypto Wager
The disclosure shortly shifted right into a broader dialogue about Hoffman’s funding thesis round LIT and Lighter, notably after Multicoin Capital’s Kyle Samani requested why a person would select Lighter over Robinhood. Hoffman framed the reply round product specialization, market construction and auditability slightly than merely token hypothesis.
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“The straightforward reply is that Robinhood is an all the pieces platform, and Lighter is very optimized for perps particularly,” Hoffman wrote. “Lighter has extra property, together with extra pre-IPO markets. Lighter doesn’t require KYC join, and Robinhood Perps are for under a closed group of customers within the EU.”
He acknowledged one vital constraint: “Against this, Lighter is VPN blocked within the US.” However Hoffman argued that the deeper distinction is transparency. He pointed to zkLighter, Lighter’s zero-knowledge system, which he mentioned permits finish customers to confirm the alternate’s rule enforcement with out permission.
“zkLighter is absolutely auditable by finish customers, so anybody can permissionlessly confirm the alternate is following its personal guidelines,” he wrote. “Order matching, funding, threat checks, liquidations and so forth are outlined in zk circuits, so Ethereum verifies that they adopted Lighter’s guidelines earlier than accepting state updates. Bullish crypto ethos!”
For Hoffman, the auditability declare isn’t merely technical branding. He argued that it goes on to dealer and market-maker belief, as a result of members can confirm that “there isn’t a privileged occasion buying and selling in opposition to customers,” invoking the FTX and Alameda collapse because the related failure mode.
Hoffman additionally emphasised latency and execution price. He claimed Lighter has “the perfect latency of any perp alternate” and “the perfect payment construction,” whereas pointing to third-party comparisons in opposition to Hyperliquid. On Robinhood, nonetheless, he was extra cautious, saying he couldn’t decide Robinhood perps immediately as a result of he can not entry them and wouldn’t be capable to audit them in the identical method.
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“Perhaps Robinhood, when it will definitely rolls out perps, additionally has a 0-fee construction too,” he wrote. “However meaning a tie between RH and Lighter, not a RH win.”
The talk additionally uncovered pushback from elements of the Ethereum group. One person accused Hoffman of going “from eth maxi to the opposite excessive,” whereas one other recommended he had develop into extra of a short-term dealer. Hoffman rejected each characterizations.
“The know-how underneath all of those property is fairly fascinating too,” he replied to 1 critic. To a different who joked about him having an funding thesis and sticking to it, Hoffman responded: “My final funding thesis I had for eight years. God forbid I get a brand new one!”
Requested immediately about LIT versus HYPE, Hoffman mentioned he views the place as each “beta and alpha” to HYPE. His reasoning centered on relative buybacks, product high quality and regulatory positioning, citing “LIT buybacks” as transferring at “2x the relative velocity of HYPE Buybacks,” alongside what he described as a technically superior product, higher charges, stronger latency and US domicile.
At press time LIT traded at $1.50.
Featured picture created with DALL.E, chart from TradingView.com
