LIT rises 369% after Bankless founder sells ETH

David Hoffman, co-founder of the crypto media company Bankless, sold his Ethereum in May and moved into LIT, ZEC, NEAR and VVV. That decision is now causing a stir, but also admiration: LIT has risen around 369% since then, ZEC by 110% and NEAR by 54%. Ethereum gained only 8% over the same period, while VVV lost around 6%.

In brief:

• Hoffman sold ETH in May and bought LIT, ZEC, NEAR and VVV
• LIT, ZEC and NEAR have since risen by 369%, 110% and 54%, respectively
• ETH rose just 8% over the same period, VVV fell 6%

Hoffman exited ETH at a favourable moment

Hoffman’s switch immediately drew attention because Bankless is known as one of the most outspoken Ethereum-focused media companies in the crypto world. A co-founder publicly selling his ETH was therefore viewed with suspicion.

DeFi researcher Ignas now points out that, in hindsight, the move worked out remarkably well. According to him, LIT and ZEC have been among the best-performing assets over the past months, measured from the moment Hoffman sold his ETH.

ZEC surged after the switch

ZEC had already experienced a turbulent period recently. As previously reported, a price surge in ZEC had already led to hundreds of millions of dollars in liquidations on the market. The further rise of more than 110% since then makes the move even more striking.

Ethereum is currently trading around $2.500, an increase of just 8% compared with the period in which Hoffman liquidated his position. It is that contrast with the returns of LIT and ZEC that is reigniting the discussion.

Debate over ETH sale decision heats up

The figures cast Hoffman in a strange light: on the one hand, he was criticised for saying goodbye to ETH as an Ethereum ambassador; on the other hand, the price movements show that his assessment of the market has so far worked out favourably.

Whether LIT, ZEC and NEAR will sustain their performance is uncertain. Past returns are no guarantee of future results, and price movements of smaller altcoins can quickly reverse.