Zcash prices crashed over 40% today following a stunning revelation by developers. A severe vulnerability in the protocol’s Orchard shielded pool left the privacy coin exposed for more than four years, potentially allowing hackers to execute undetectable counterfeiting.
This has sparked concerns, with many dumping their ZEC holdings. For context, BitMEX co-founder Arthur Hayes, who has long been bullish on the privacy coin, has dumped his entire ZEC holdings.
However, despite that, it seems that some whales are taking the recent opportunity to buy the dip, as evidenced by the latest on-chain transaction data.
Zcash Price Dips 40% Amid Market Concerns
Zcash crypto was one of the top laggards in the crypto market today, with its price witnessing double-digit losses. This comes after developers revealed a critical vulnerability that had gone undetected for years, shaking investor confidence in the privacy coin.
The disclosure centered on a flaw within the Orchard shielded pool, a core component designed to enable private transactions. According to developers, the bug potentially allowed malicious actors to create counterfeit ZEC tokens without leaving any trace on the blockchain.
The issue was uncovered on May 29 by security researcher Taylor Hornby using AI-assisted auditing tools. It highlighted both the growing sophistication of blockchain analysis and the lingering risks 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 the exploit was ever used. Meanwhile, this development has triggered panic selling, sending the Zcash (ZEC) price down by more than 40% today.
ZEC Whale Remains Bullish, Hinting at Recovery Ahead
Despite the massive dip in Zcash price, a whale has aggressively bet on the privacy coin. According to Lookonchain data, a new wallet bagged 37,316 ZEC tokens, worth $13.12 million, from Binance after the crash.
This indicates that some investors are taking the recent crash as a buy-the-dip opportunity. In addition, if the large investors or whales continue to bet, it might help in a strong recovery for the Zcash price.
However, despite that, not everyone is bullish on the token. For context, Arthur Hayes, who has long been vocal for the privacy coin, revealed dumping his entire Zcash portfolio.
As of writing, the ZEC price was down more than 40% and exchanged hands at $330, after falling to as low as $255.78 in the last 24 hours. Notably, the 24-hour high of the Zcash price was recorded at $524.05.
