ZCash (ZEC) Crashes Fast after Coinbase Debut

The official trading launch coincided with a rapid sell-off, wiping out gains made in expectation of the Coinbase listing.

A listing on Coinbase seems to be more as a curse than a blessing for the digital assets added to the platform. ZCash (ZEC) experienced the same crash in prices, which almost coincided with the launch of live Coinbase offers.

As of 18:00 UTC on December 5, ZEC slid from above $70 to $65 level, spending an entire week on a downward slope from recent levels above $89. For now, volumes have inched up to $162 million equivalent in 24 hours. The asset currently trades at extremely low levels, down 93% from peak prices and 80% year-on-year.

The ZCash project includes the option for anonymous transactions but also an option to reveal enough to link the transaction to an identity. ZEC has been more widely accepted than Monero (XMR), an anonymous asset that has been quietly removed from exchanges and exchange services. While services like Changelly have taken XMR out of their selection, Zcash is still available.

ZEC is viewed with skepticism for starting with a pre-mine to build a developer reward. Monero’s founder, Riccardo Spagni, suggested the ZCash project may end up as a proof-of-stake coin, based on the comments of Zooko, the lead developer of ZCash:


It is still unclear whether the ZCash project would do anything to improve its mining protocol. It has yet to make a decision to disable ASIC that mine the Equihash algorithm. In the past three months, the ZCash hashrate has grown about twice, to 2.2 GH/s, which remains a relatively low level compared to larger coins.

Since the Vertcoin 51% attack, the ZCash community has been watching out for signs that a similar attack is feasible. According to the 51crypto app, it would cost $14,919 an hour to attack the network through hired hashrate. However, there is no telling how many Equihash ASIC are available to attack the still relatively small network.

The other risk for ZEC is its trading profile at the time of the Coinbase launch. ZEC mostly trades in pairs with Bitcoin (BTC) and Ethereum (ETH), with only a small portion attributed to USDT trading. LBank, a crypto-only exchange, is highly prominent and sets the price. The effect of direct Coinbase buying, which limits the size of the orders and excludes New York buyers, is yet to be seen for this relatively new digital asset.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.

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