Trust crisis in Zcash: Swan founder accuses project team of "coordinated pump"
Tensions are rising around Zcash (ZEC) in the cryptocurrency world. Renowned entrepreneur and founder of the Swan Bitcoin platform, Cory Klippsten, has sharply criticized this asset, calling the current investment campaign around it a "coordinated pump." In his view, Zcash is "garbage," and the ZEC token itself is almost entirely lacking in decentralization.
The expert's key argument is the coin distribution statistics. Klippsten claims that a staggering 99% of all ZEC supply is held on centralized exchanges. This means that the actual use and decentralized governance of the network are seriously in question, and the asset itself resembles a tool for speculation rather than a means for private transactions.
Against the backdrop of these statements, the market picture for ZEC looks bleak. According to CoinMarketCap data, the price of ZEC has dropped by approximately 33% over the past month. This decline occurs amid internal issues: Zcash developers recently had to urgently discuss a network upgrade after discovering a critical vulnerability in the Orchard pool, which was supposed to provide enhanced privacy.
Cryptalist Analytical Commentary
The situation with Zcash is a classic example of the gap between technological promises and real market practice. If 99% of the coins are indeed on exchanges, the very idea of a "private payment system" loses its meaning: such assets are easily blocked and tracked by regulators. Without real adoption in everyday transactions and without solving security issues, Zcash risks turning into a niche speculative tool that fails to justify community trust.