Zcash prices collapsed by more than 40% today following a stunning reveal by developers. A critical vulnerability in the protocol-protected Orchard pool has left the privacy coin exposed for more than four years, potentially allowing hackers to carry out undetectable forgeries.
This has raised concerns, as many have abandoned their ZEC holdings. For context, BitMEX co-founder Arthur Hayes, who has long been bullish on the privacy coin, recently dumped his entire holding in ZEC.
However, despite this, some whales appear to be seizing the latest opportunity to buy the dip, as evidenced by the latest cross-chain transaction data.
Zcash price drops 40% amid market concerns
Zcash cryptocurrency was one of the biggest laggards in the cryptocurrency market today, with its price seeing double-digit losses. This comes after the developers revealed Critical weakness Which went undetected for years, shaking investors’ confidence in the privacy coin.
The disclosure focused on a flaw in the Orchard Protected Suite, a core component designed to enable private transactions. According to the developers, the bug potentially allows malicious actors to create fake ZEC tokens without leaving any trace on the blockchain.
The issue was uncovered on May 29 by security researcher Taylor Hornby using AI-powered auditing tools. It highlighted the increasing sophistication of blockchain analysis and the risks remaining within privacy protocols.
In a public statement, Shielded Labs acknowledged the severity of the flaw, noting that due to the protocol’s privacy features, it is impossible to determine whether or not an exploit has been used. Meanwhile, this development sparked panic selling, sending the price of Zcash (ZEC) down more than 40% today.
ZEC stock remains bullish, indicating a recovery ahead
Despite the significant drop in the price of Zcash, whales have bet aggressively on the privacy coin. According to LeConchine DataA new wallet acquired 37,316 ZEC tokens worth $13.12 million from Binance after the collapse.
This suggests that some investors view the recent collapse as a buying opportunity. Additionally, if big investors or whales continue to bet, it could help in a strong rebound in the Zcash price.
However, despite this, not everyone is optimistic about the token. For context, Arthur Hayes, who has long advocated for a privacy coin, revealed that he has phased out the Zcash wallet entirely.
At the time of writing this report, The price of your outfit It fell more than 40% and was trading at $330, after falling to a low of $255.78 in the past 24 hours. Notably, the highest level of Zcash’s 24-hour price was recorded at $524.05.
