Criticism of Zcash from Swan's founder: "coordinated pump" and 99% of ZEC on exchanges
Cory Klippsten, founder of the Swan Bitcoin platform, sharply criticized the cryptocurrency Zcash (ZEC). In his statement, he called the current investment campaign around this asset a "coordinated pump" and ZEC itself "garbage." According to his assessment, the vast majority of tokens—about 99%—are held on centralized exchanges, which, in his view, undermines the very concept of decentralization and privacy that Zcash developers promote.
Price Drop and Technical Issues
Data from CoinMarketCap confirms the negative trend: over the past month, ZEC has lost about 33% of its value. This decline occurs amid recent technical difficulties—Zcash developers were forced to discuss a network update after discovering a critical vulnerability in the Orchard pool, a key component for ensuring anonymous transactions. Such incidents cast doubt on the protocol's reliability and its ability to compete with other privacy solutions.
Expert Opinion
The situation surrounding Zcash demonstrates a classic conflict between privacy promises and real market practices. The high concentration of coins on exchanges indeed makes the asset vulnerable to manipulation, and technical issues only exacerbate investor distrust. Under current conditions, until the team resolves fundamental security issues and demonstrates real adoption of anonymous transactions, Zcash risks remaining a niche project with limited growth potential. I recommend caution with long-term investments in ZEC until clear signs of restored community trust emerge.